The USD currency has been trading in a cautious range since the week opened after the last FOMC meeting that set the Fed's interest rate cut decision and important data releases in the near future.
At 9.55 am, the US Dollar Index (DXY), which measures the US dollar, is currently at 98.285 points, up 0.03% since it opened in early trading on Tuesday in the Asian session.
Meanwhile, financial markets are also currently awaiting the expected 25 basis point rate cut by the Bank of England (BoE) scheduled to take place on Thursday night. Any change will certainly trigger a trend for the GBP/USD pair and the potential for further dovishness in 2026.
Throughout this week, several key economic data will be the focus of investors, especially the ADP employment report, Non-Farm Payrolls (NFP), unemployment rate, retail sales data, PMI, as well as the Fed's inflation gauge through the Consumer Price Index (CPI).
Each published data is expected to provide a clearer indication of the direction of the US dollar's movement towards the end of the year.
