The U.S. Dollar Index (DXY) remains under pressure following a weaker-than-expected nonfarm payrolls report, which saw August job creation slow to 22,000 and the unemployment rate climb to 4.3%. Markets have priced in a near-certain rate cut by the Federal Reserve at its upcoming meeting, with a 10% chance of a larger 50 bps cut.
Technically, the DXY has broken below the 98.00 support level, undermining bullish momentum. A sustained break below this zone would signal further downside toward 97.00, especially as Treasury Secretary Bessent and President Trump amplify political pressure on the Fed. The near-term outlook remains bearish, with monetary policy expectations and weak U.S. data weighing on the greenback.
