FX.co ★ Dollar Falls for 3rd Session

The dollar index fell below 98 on Tuesday, marking its third consecutive day of decline. Despite remaining largely unchanged throughout September, the US dollar is poised for a 1% increase over the quarter. The currency has been under pressure due to global trade tensions, skepticism regarding the resilience of the US economy, and rate cuts by the Federal Reserve. There is also the looming threat of a government shutdown exacerbating these challenges. On the economic data front, job openings remained steady at 7.2 million in August, indicating a relatively stable demand for labor. If a government shutdown is avoided and data is released as planned, the nonfarm payrolls report due on Friday will shed new light on the cooling labor market. The markets have already fully priced in a 25 basis point reduction in the federal funds rate for October, with a 72% probability of a similar cut in December.