The dollar was little changed on Wednesday, continuing to trade near six-week highs on the back of strong economic data. Survey data released on Tuesday showed U.S. business activity unexpectedly rebounded in February to reach its highest in eight months. In the eurozone, a survey-based gauge of activity also surged, hitting a nine-month high. The signs of economic strength caused traders to pencil in further interest rate hikes from the Federal Reserve on Tuesday. At the start of February, expectations were for a peak just below 5%. The Fed has raised rates to a range of 4.5% to 4.75%, from 0% to 0.25% as recently as March 2022.
Focus later in the session with be on the FOMC meeting minutes.