FX.co ★ DXY Slides After Fed Chair Powell Speech

On Tuesday, the dollar index edged closer to 99 as investors processed comments from Federal Reserve Chair Jerome Powell, who pointed to a weakening labor market, thereby strengthening the anticipation of an impending rate cut. The current federal government shutdown has hindered the release of vital economic data, leaving near-term growth indications vague and shifting attention towards policy updates. Concurrently, markets are keeping a close eye on US-China trade tensions ahead of a possible meeting between President Trump and President Xi. Recent sanctions by China on US-affiliated units of South Korea’s Hanwha Ocean have added layers of uncertainty to the global trade landscape.