The U.S. dollar was steady on Wednesday, holding onto overnight gains as traders braced for crucial inflation reports this week that could help define the size and scope of interest rate cuts from the Federal Reserve for next week and beyond.

The price action came as revised US jobs data highlighted a labor market slowdown, with investors holding firm on a 25 basis point cut while awaiting this week’s inflation report.

The U.S. dollar fell to its lowest level in nearly seven weeks on Tuesday, pressured by concerns that upcoming labor market revisions could expose deeper cracks in the economy. The dollar index slipped to 97.

The bank likened the situation to last September, when the Fed implemented a larger-than-anticipated cut to counter slowing momentum. The potential rate move is called a “catch-