"Breaking: US Dollar Plummets Before Crucial Economic Data Release; All Eyes on Fed"

Dollar Dip: U.S. dollar retreats amid investors' wait for economic data and upcoming Federal Reserve meeting.

Data Impact: Dollar rebounds as positive business activity and easing inflation data in the U.S. offset losses.

Economic Indicators: Focus on Q4 2023 U.S. GDP and Friday's Personal Consumption Expenditure (PCE) data.

Market Sentiment: Repricing of expectations for Fed rate cuts leads to potential short-term dollar strength.

Dollar Index: Slides 0.2% to 103.26 after reaching a six-week peak.

Correction Phase: Analysts suggest ongoing correction higher for the dollar.

Rate Cut Odds: U.S. rate futures indicate a 40% chance of a March rate cut.

Yen's Impact: Dollar falls 0.5% against the yen at 147.58, influenced by rising Japanese bond yields.

Euro's Rebound: Euro rises 0.3% to $1.0885 from a six-week low, with ECB meeting ahead.

Other Currency Moves: Sterling climbs on strong PMI, Bank of Canada holds key rate, and Bitcoin rises to $39,875.