Jerome Powell, Chairman of the Federal Reserve (Fed), will present the semi-annual monetary policy report. If Jerome Powell is optimistic about the inflation outlook, investors might become hopeful for an interest rate cut in September, which could further weaken the US dollar.

The FedWatch tool from CME Group shows that the market anticipates only a 25% chance that the Fed will maintain interest rates at the September meeting.

The latest employment report indicates that US non-farm payrolls increased by 206,000 in June, higher than the market forecast of 190,000. However, the US Bureau of Labor Statistics (BLS) announced that the non-farm payroll figures for May were revised down to 218,000 from 272,000.

Source: Fxstreet