Dollar recovers as central bank decisions loom

Economic Outlook - Analysts from Bank of America expect the European Central Bank (ECB) to hold rates, emphasizing higher uncertainty with only minor communication tweaks [1][4] - The British pound remained flat at $1.3650 ahead of the Bank of England's policy decision, which is also expected to keep rates on hold [1][4] - The U.S. dollar index increased by 0.2% to 96.671, trading near a two-week high, as financial markets assess the U.S. corporate earnings season [4] Market Performance - The Nasdaq Composite fell by 2.9% over two days, marking its largest decline since October, driven by volatility from major companies like Alphabet and a downturn in software stocks [2][4] - Federal Reserve Governor Lisa Cook expressed concerns about inflation rather than the labor market, indicating a reluctance to support further interest rate cuts until inflation pressures ease [2][5] Currency Movements - The U.S. dollar slipped 0.1% to 6.9386 yuan against the Chinese yuan following discussions between U.S. President Trump and Chinese President Xi Jinping regarding trade and security [3][5] - The Australian dollar rose by 0.1% to $0.70045 after trade balance data exceeded market expectations, while the New Zealand dollar also gained 0.1% to $0.60045 [3][5] Cryptocurrency Trends - Cryptocurrencies stabilized after a significant selloff, with Bitcoin rising by 0.2% to $72,745.23 and Ether increasing by 1% to $2,146.63 [5]