Dollar Dips as Market Awaits Powell's Testimony, Euro Holds Steady Post-France Polls

The U.S. dollar has approached its lowest value in nearly a month against major peers, affected by Friday's soft jobs report. Investors await Federal Reserve Chair Jerome Powell's testimony for interest rate updates. The euro remained steady despite political uncertainties in France following a hung parliament. Trader predictions show potential rate cuts in the near future.

The U.S. dollar approaches its lowest value in nearly a month against major peers, impacted by Friday's unexpectedly soft jobs report. Traders keenly await testimony from Federal Reserve Chair Jerome Powell for guidance on future interest rates.

The euro maintained its stability amidst Monday's sharp swings, as investors come to terms with a hung parliament in France, alleviating fiscal concerns from far-right or far-left victories. The U.S. dollar index, which tracks the currency against six major peers including the euro, yen, and sterling, was flat at 104.99, close to a 3 1/2-week low.

Traders see a 76% chance of a rate cut in September, up from 66% a week ago, according to the CME Group's FedWatch Tool. Another cut is anticipated by December. Powell begins a two-day congressional testimony on Tuesday. Consumer price data on Thursday could also be pivotal, as recent figures show a cooling from high levels earlier this year.

(With inputs from agencies.)