The US dollar index has fallen to its lowest level since May, and expectations of interest rate hikes have cooled down

According to a report by Golden Ten, the US dollar index DXY fell to its lowest level since May, as weak US retail sales data prompted traders to reduce their expectations for interest rate hikes this year. Bond market traders withdraw their bets on the Federal Reserve raising borrowing costs by 2026. The US dollar is expected to record a weekly decline in the sixth week of the past seven weeks. The weak labor market report released last Friday, coupled with mild inflation data this week, has contributed to the recent decline.