Dollar weakens across the board as European session opens

The US dollar extended overnight losses as European markets opened Monday, with the Dollar Index (DXY) falling 0.3% to 100.45 amid growing expectations for a dovish Federal Reserve stance at Wednesday's policy meeting. EUR/USD advanced 0.25% to 1.1065, while GBP/USD gained 0.2% to 1.3170 as traders continued positioning for Fed easing. The dollar's weakness reflects market conviction that the Fed will deliver a 25 basis point rate cut and signal further easing through 2025. Asian session data showed continued dollar selling pressure with USD/JPY dropping to 141.30 and AUD/USD reaching 10-month highs. European economic calendars remain light, keeping focus on Fed expectations. Technical indicators suggest the DXY could test 100.00 psychological support if current momentum persists. Major resistance for dollar pairs sits at recent highs: EUR/USD at 1.1100, GBP/USD at 1.3200. The dovish Fed narrative continues dominating forex flows ahead of Wednesday's announcement.