LONDON—The U.S. dollar struggled versus its major rivals on Monday as traders reassessed the prospects of aggressive rate hikes, while the euro led gainers at the start of the European Central Bank’s annual summit in Portugal.
Aggressive interest rate hike bets have boosted the dollar in recent days with an index rising to a near two-decade high of 105.79 earlier this month. But with some high-frequency data indicators showing growth momentum starting to cool, investors are turning bearish on the economy’s prospects.
“The sharp rise in inflation expectations has resulted in consumer confidence falling to a record low which will reinforce fears over a sharper slowdown in the U.S. economy going forward,” Mizuho strategists said in a note….