Dollar Trades Subdued Ahead of US Data Releases

The US Dollar (USD) is trading marginally lower ahead of key economic data releases from the United States. The US Dollar Index (DXY), which tracks the value of the Greenback against six major currencies, is hovering around 99.80.

The closely-watched ADP Employment Change and ISM Services Purchasing Managers' Index (PMI) data for July will be published in the North American session. The market expects a fresh addition of 70K payrolls in the private sector, lower than June's 98K.

These data points will have significant implications on the Federal Reserve's interest rate expectations. Currently, there is a 56.7% chance that the Fed will raise interest rates in September, according to the CME FedWatch tool.