Dollar Stabilizes Ahead of Key Economic Data Releases

The US dollar has stabilized against major currencies as traders pause ahead of key economic data releases.

The greenback's recent volatility was driven by shifting expectations for US interest rates, but investors are now waiting for fresh signals on inflation and employment.

Major reports due out include the latest figures on inflation and consumer spending, which will shape expectations for Federal Reserve interest rate decisions.

Currency pairs like EUR/USD and USD/JPY are likely to react sharply to any surprises in these data releases.