The dollar index traded below 99 on Monday after two consecutive weeks of declines, pressured by expectations that the Federal Reserve will cut interest rates this week. Markets are pricing in about an 88% chance of a 25 basis point cut on Wednesday, up from roughly 67% a month ago. However, the rate outlook for 2026 remains uncertain, with analysts expecting a “hawkish cut” in which Chair Jerome Powell may signal a more cautious path for additional easing. This week’s key US data includes the delayed October JOLTS report on Tuesday, which will provide fresh insights into hiring trends, layoffs and worker quit rates. Investors are also watching policy decisions from central banks in Australia, Brazil, Canada and Switzerland, though all are expected to keep rates on hold.
