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09.09.202501:39:16UTC+00Dollar Hovers Near 7-Week Low

The dollar index remained steady at 97.4 on Tuesday, hovering near its lowest point in nearly seven weeks. This stability comes amid growing concerns about a cooling labor market, which in turn have heightened expectations for Federal Reserve interest rate cuts. Investors are looking ahead to the forthcoming U.S. benchmark revisions for employment, covering the period from April 2024 to March 2025. Economists anticipate these revisions could reveal a downward adjustment of up to 800,000 jobs, suggesting that the Fed might be falling short of its goal to achieve maximum employment. Furthermore, all eyes are on two crucial inflation reports set to be released this week, which could play a significant role in shaping the Fed's next policy decision. The August producer price index is scheduled for release on Wednesday, followed by the consumer price index on Thursday. Currently, the markets predict an 89% likelihood of a 25 basis point cut at the upcoming meeting, although some market participants are speculating about a larger 50 basis point reduction.

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