The dollar index (DXY00) on Wednesday fell by -0.61% to a 1-week low. Hawkish comments from ECB Governing Council member Holzmann on Wednesday boosted EUR/USD to a 1-week high, undercutting the dollar, as he stated there is no need for the ECB to cut interest rates further.
The dollar was also under pressure from increased expectations for a Fed rate cut after the recent weaker-than-expected US payroll and PMI reports. Losses in the dollar accelerated Wednesday on dovish comments from Minneapolis Fed President Neel Kashkari and Fed Governor Lisa Cook, who signaled their support for interest rate cuts.
