Dollar Index Dips Ahead of NFP Report

The U.S. Dollar Index (DXY) dipped by 0.1% in early European trading on Monday as investors positioned ahead of the crucial Non-Farm Payrolls (NFP) report due later this week.

The index has been range-bound in recent weeks, with traders reluctant to take large positions ahead of the data.

A robust NFP reading could reinforce expectations of a more hawkish Fed, potentially boosting the dollar, while a weak figure might fuel speculation about rate cuts, pressuring the currency.