The US dollar traded near a three-month high as traders moderated near-term rate cut probability and repositioned portfolios around comparatively stronger US macro carry relative to Europe and Japan. Softer conviction on policy easing has triggered FX defensiveness and renewed dollar long build-up, with carry strategies favoring USD relative to Asian crosses. The shift suggests investors are pricing higher nominal rates persistence while central banks remain hesitant to pre-commit to predictable glidepaths. FX desks are preparing for volatility spikes tied to incoming US labour data, Treasury issuance cadence and Fed communication cadence shifts.