US Dollar Near Two-Week Low as Fed Rate Hike Expectations Cool

Key Facts

Amid rising concerns over slowing economic momentum, the US dollar steadied near a two-week low following labor market data that came in softer than anticipated. According to reports, investors have begun scaling back bets on further interest rate hikes by the Federal Reserve as US jobs growth showed signs of deceleration. This currency market movement reflects a direct response to indicators suggesting that the monetary tightening cycle may have reached its peak.

The pressure on the greenback comes as global markets display divergent economic performance, with recent Eurozone data showing economic sentiment rising to 95 points per market data (close June 29, 2026). Simultaneously, traders are closely monitoring Japanese authorities as the Yen remains near 40-year lows, sparking intense discussion regarding a potential intervention to support the Japanese currency against the weakening dollar.

Looking ahead, markets are awaiting inflation data from Germany and the broader Eurozone to gauge monetary policy divergence among major central banks.