Dollar Index Drops Below 100 Amidst Upcoming Economic Releases

The US Dollar Index (DXY) slipped below 100 after failing to hold above this level. The index hovered around 99 ahead of the Labor Day holiday on Monday, September 5.

The next major data releases begin on September 8, with key indicators such as NFIB Business Optimism Index, Consumer Inflation Expectations, and ADP Employment Change Weekly. On September 10, Initial Jobless Claims, Producer Prices, Existing Home Sales, and the EIA weekly crude oil stockpiles will be released.

The EUR/USD pair rose but stayed below 1.1700, ahead of the European Central Bank's rate decision on September 10. The market expects the ECB to lower its key rate to 2.25% from 2.50% to address sluggish growth and Eurozone inflation near the 2% target.

The Japanese Yen is expected to outperform as USD/JPY plummets toward seven-month lows near 155.00 on speculation of further Bank of Japan tightening. The final Q2 GDP growth rate in Japan will be released on September 8, followed by wage data, which will show if the domestic economy can handle higher interest rates.