FX.co ★ Dollar Falls for 4th Day

The dollar index experienced its fourth consecutive decline on Wednesday, reaching 98.4, as investors monitored forthcoming announcements regarding potential changes in Federal Reserve leadership. On Tuesday, President Trump stated that a nominee would be announced by the end of the week to succeed departing Fed Governor Adriana Kugler. Furthermore, he disclosed that the list of candidates to replace Fed Chair Jerome Powell has been narrowed down to four finalists. Anticipations for a rate cut in September have increased significantly, now standing at about 90%, driven by a series of weak economic indicators. The most recent ISM report highlighted unexpected stagnation within the services sector, coupled with escalating price pressures. Adding to the dovish sentiment, the latest employment data revealed that the US economy added only 73,000 jobs in July, accompanied by notable downward revisions for the prior two months, indicating a significant slowdown in the labor market. Consequently, President Trump dismissed BLS Commissioner Erika McEntarfer. The dollar remained largely weaker against the euro.