Dollar Dips Amid Fed Rate Cut Speculation

The U.S. dollar experienced significant declines against major currencies, hitting a two-month low against sterling and the euro, and a ten-month low against the Australian dollar. This comes as investors anticipate a potential interest rate cut by the Federal Reserve this week, amidst softening labor market data.

President Donald Trump has called for a more aggressive monetary policy, urging Fed Chair Jerome Powell to deliver a substantial rate cut, citing concerns over the housing market. The consensus is for a 25 basis point cut, influenced by the weak labor market.

Elsewhere, the British pound rose, though concerns about inflation remain for the Bank of England. Eurozone, as well as Japanese economic data, continues to affect currency trends as market attention remains focused on both Bank of England and Bank of Japan meetings.