Dollar Steady as Investors Await Economic Data and Fed Meeting

The dollar remains steady as investors await U.S. economic data and the Federal Reserve policy meeting. Geopolitical tensions in the Middle East subdue risk sentiment. The dollar index is close to a six-week high, with expectations of aggressive easing by most G10 central banks. The European Central Bank is expected to cut interest rates from April, with nearly 140 basis points of easing priced in for the year. The yen has declined by 5% in January due to expectations of rapid BOJ policy normalization. The Australian and New Zealand dollars also strengthened, while bitcoin rose by 0.55% to $42,2016.