The U.S. dollar could strengthen as retail sales data is set to be released soon, which will reflect consumer spending power.
However, the preliminary Consumer Sentiment Index for March has dropped to 57.9, the lowest level since November 2022, putting pressure on the U.S. dollar. Consumer outlook remains cautious, viewing the U.S. economy as still volatile.
Investors anticipate that the Federal Reserve will keep interest rates unchanged in the March meeting. Additionally, they have assessed nearly a 75% probability of a 25-bps rate cut in June.
Source: Fxstreet