Overview

• The dollar index has slid to 98.749, marking a near 9% decline this year and nearing its weakest annual performance since 2017.
• US services sector activity contracted in May for the first time in nearly a year, stoking concerns over growth.
• Swap traders have priced in two Federal Reserve rate cuts by year-end on sluggish economic indicators.
• A Reuters poll shows almost 90% of FX strategists expect reduced demand for US dollar-denominated assets in the coming months.
• Euro forecasts in the same survey anticipate gains toward $1.18 within a year as ECB rate cuts loom.