LONDON—The U.S. dollar held its ground on Wednesday as traders waited for this week’s U.S. consumer price data to see whether it will confirm that inflation is in retreat.
The euro flattened against the dollar after a European Central Bank policymaker said the cycle of interest rate increases was approaching its end, while ECB staff published an article arguing that “very strong” wage pressures are likely over the next few quarters.
While traders awaited U.S. inflation data to help firm up Federal Reserve interest rate hike expectations, ECB’s governing council member Mario Centeno said on Tuesday he expected inflation to fall again in March and the monetary tightening process was nearing its end….