Improved risk sentiment and upcoming US-Iran negotiations weigh on the safe-haven USD ahead of key economic data.
The US Dollar Index (DXY) fell below the 100 mark, trading near 99.70 in Asian hours on Monday. The decline follows President Trump’s announcement that talks with Iran would begin, easing geopolitical tensions and reducing demand for the safe-haven currency.
Traders are also awaiting the US ISM Manufacturing PMI report later today, with Friday’s Nonfarm Payrolls data expected to show a 91,000 jobs increase and a 4.3% unemployment rate. The Fed’s July decision to hold rates steady has already lowered September rate hike expectations to 64.7% from 77%.
Markets may see further USD pressure if economic data disappoints or if US-Iran negotiations progress, though stronger-than-expected jobs figures could limit losses.