The dollar index (DXY00) today is down by -0.37% at a 1-week low. Hawkish comments today from ECB Governing Council member Holzmann boosted EUR/USD to a 1-week high and undercut the dollar when he said he sees no need for the ECB to cut interest rates further. The dollar is also under pressure from increased expectations for a Fed rate cut after the recent weaker-than-expected US payroll and PMI reports. The dollar dropped to its lows today after Minneapolis Fed President Neel Kashkari said it may be appropriate to cut interest rates in the near term.
Also, questions about the Fed's credibility continue to weigh on the dollar after Fed Governor Adriana Kugler resigned last Friday, which could prompt President Trump to nominate a new governor who is more dovish and could undermine Fed Chair Powell's influence.
