Dollar advances against major peers as market await Fed; bitcoin hits new high

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NEW YORK/GDANSK, Dec 16 - The U.S. dollar advanced against major currencies on Monday, hovering near a three-week high, as markets await the Federal Reserve and other key central bank meetings this week for clues on the likely path of interest rates in 2025.

"The dollar has gained a quite a bit of strength since the end of September. And that makes sense since all our economic indicators are going contrary to the attempted Fed narrative over the last couple of months, in which they cut rates saying inflation is going down towards their desired direction and the job market is getting weaker."

The euro rallied after German chancellor Olaf Scholz lost a parliamentary confidence vote, paving the way for snap elections in February. The euro rebounded after early session losses but pared those gains and was down 0.06% at $1.0496. Sterling was up 0.70% to $1.26970, after it lost ground on Friday to its lowest point since Nov. 27, when data showed a surprise economic contraction in the British economy.

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