Dollar index stays pressured amid downbeat US data; Fed speakers in focus

The dollar index continues to linger below 99 mark on Wednesday, pressured on growing expectations of a Federal rate cut in the upcoming FOMC. Recent data points to weakening signs in US economy and soft labour market are seen setting stage for a near term rate cut. Moreover, data released by the Institute for Supply Management (ISM) yesterday revealed that the Services PMI eased to 50.1 in July, versus 50.8 prior.US treasury yields are lingering around a 3-month low while the dollar index is quoting at a one-week low at 98.49. Meanwhile, Trump reportedly said he would announce decisions soon on a nominee for the next Fed chair and will also reveal a decision on a short-term replacement for Fed Governor Adriana Kugler, who resigned last Friday. All eyes are glued to speeches due from the Fed policymakers later in the day, including Susan Collins, Lisa Cook and Mary Daly.

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