Dollar drops against majors as Fed rate cut expectations rise

The US Dollar weakened significantly against major currencies over the past week as markets renewed expectations for Federal Reserve rate cuts. Growing speculation about potential monetary easing has pressured the greenback, with traders repositioning ahead of upcoming economic data releases. The shift in sentiment reflects concerns about US economic momentum and the Fed's ability to maintain its current hawkish stance. Major pairs including EUR/USD, GBP/USD, and others have capitalized on dollar weakness, posting gains as investors reduce long dollar positions. Market participants are closely monitoring Fed officials' comments and economic indicators for clues about the timing and magnitude of potential rate adjustments. Technical levels across major pairs suggest further dollar weakness possible if rate cut expectations solidify. The evolving monetary policy outlook remains the primary driver for forex markets, with any hawkish surprises potentially reversing recent dollar losses.