US Dollar Forecast: Fed Rate Cut Odds Hit 87% After Powell Speech, GBP/USD and EUR/USD

By Arslan Ali

US Dollar Forecast: Fed Rate Cut Odds Hit 87% After Powell Speech, GBP/USD and EUR/USD

Traders eye Durable Goods Orders and the PCE Price Index this week, both critical for Fed's September decision.

During the Asian session on Monday, the US Dollar Index (DXY) traded slightly higher but hovered near a four-week low, slipping below the 98.00 mark. The Greenback remains pressured as markets digest comments from Federal Reserve Chair Jerome Powell, who signaled that policy adjustments may be needed amid shifting risks to inflation and employment.

Powell noted that while inflation remains a concern, risks to the labor market are rising. He acknowledged that the Fed's current stance is "very restrictive" and suggested a shift could come soon.

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