The dollar fell during today's trading on Monday with the beginning of the week's trading, as the dollar fell against most major currencies against other major currencies, and the dollar looks ready to reach the lowest levels achieved by the dollar during the current year.
The dollar has continued to decline since last week despite traders backing away from pricing in a more aggressive interest rate cut by the Fed.
Traders are now putting only 28% odds of a 50 basis point interest rate cut next month, and 95 basis point cuts by the end of the year, both of which are considered lower than market expectations before last week's US CPI report here.
Speaking on Friday in Jackson Hole, Fed Chairman Jerome Powell is likely to highlight that inflation is moving in the right direction, giving markets more confidence that it will reach its 2% target, and the Fed will also have to admit that the labor market has not been as good as official data may indicate.
We also expect that he will at least give the green light to cut interest rates at the September meeting, although we have some additional US data before the next meeting.
