LONDON—The dollar edged lower on Monday as traders took the view that Federal Reserve tightening moves were largely priced in, while the euro eased from Friday’s two-month high. An unexpected cut to key lending rates in China highlighted it as the outlier, with other major central banks in talks to raise rates. China’s move only briefly weighed on the yuan. The U.S. dollar index, which declined sharply last week until Friday’s leap, edged down 0.1 percent at 95.076 at 0900 GMT. The cash Treasury market was closed for a holiday on Monday. “With 3.7 Fed rate hikes priced in for 2022 and 2.3 for 2023, market participants seem to be inferring that the risks to policy pricing are now more balanced,” Goldman Sachs told clients. The Fed meets on Jan. 25-26 and is not expected to move rates yet. The euro rose 0.1 percent versus the dollar at $1.1432, with …
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