Dollar Weakness Continues as Traders Scale Back Bets on Hawkish Fed
The U.S. dollar has continued to weaken as traders scale back their bets on a hawkish Federal Reserve, leading to a decline in the dollar index. The dollar index, which measures the value of the dollar against a basket of other major currencies, is now trying to settle below the support level at 99.25-99.40.
The EUR/USD pair has taken advantage of the dollar's weakness, testing multi-week highs as traders remain bullish on the euro. The nearest resistance level for EUR/USD is located in the 1.1600-1.1615 range, and a break above this level could lead to further gains.
The GBP/USD pair has also moved higher, reaching multi-week highs as traders bet that the Fed will leave interest rates unchanged at its next meeting in September. The GBP/USD pair is currently trying to settle above the resistance level at 1.3550-1.3565, and a break above this level could lead to further gains.