Dollar index set for weekly fall of over 3%; ECB hints rate-cutting cycle may be nearing its end

US dollar index slips under 104 mark for the first time in four months as investors look forward to US non-farms payroll report for further insights into the economy's health. DXY that measures the greenback against a basket of currencies is quoting at 103.94, down 0.08% on the day. The index is down over 3% for the week. Meanwhile, yesterday, the European Central Bank lowered the deposit facility rate from 2.75% to 2.5%, marking the sixth rate cut since June of last year. However, it also hinted that the rate-cutting cycle may be nearing its end as inflation cools and the economy digests significant geopolitical changes, that kept the euro supported. Also, the dollar also saw a sharp depreciation against the euro as investors anticipated a significant increase in public spending across Germany and other European nations to bolster defense. Among the basket currencies, EURUSD and GBPUSD were quoting at $1.0823 and $1.2891 respectively.

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