FX.co ★ Dollar Stays Under Pressure

On Tuesday, the Dollar Index held steady at 99.4, after dipping to a two-week low on Monday. This shift follows heightened anticipation of a Federal Reserve interest rate cut, spurred by disappointing manufacturing data. The ISM Manufacturing PMI revealed that factory activity contracted for the ninth consecutive month, marking its quickest decline in four months, thereby intensifying demands for further rate reductions. Traders are now factoring in an 88% probability that the Federal Reserve will reduce rates by 25 basis points at its upcoming meeting. Concurrently, President Donald Trump announced on Sunday that he had chosen the next Federal Reserve Chair, with reports suggesting White House National Economic Council Director Kevin Hassett as a leading candidate. Investors are now eagerly awaiting Fed Chair Jerome Powell's remarks later today, which could offer additional insights into the central bank's policy direction.