The dollar continues to hold its ground amid the expected interest rate cut by the US Federal Reserve, which is likely to take place gradually in 2024. The euro declined to $1.04823, losing about 5% for the year, amid a widening yield gap between US and German 10-year bonds (216 basis points). A strengthening U.S. economy and strong readings on service sector activity are supporting the dollar, pushing up expectations of a higher neutral rate. The Fed decision is expected tomorrow and the market is almost certain of a 25bp cut.