US Dollar Faces Persistent Downside Pressure Across Major Pairs

The US Dollar Index (DXY) weakens 0.3% to 105.80 as selling pressure persists across major currency pairs. EUR/USD gains 0.2% to 1.0620, while USD/JPY drops 0.4% to 151.20, reflecting broad-based dollar weakness. Market participants increasingly price in Federal Reserve rate cuts for Q1 2025, with futures showing 65% probability of a 25-basis-point reduction by March. Recent US economic data disappointments, including ISM Services PMI falling to 52.1 from 54.5, fuel concerns about economic momentum. Technical analysis of DXY shows breakdown below 106.00 support, with next target at 105.50 (November low). EUR/USD eyes resistance at 1.0650, while USD/JPY support emerges at 151.00. The dollar's vulnerability stems from shifting Fed expectations, elevated US fiscal deficits, and improving global risk sentiment reducing safe-haven demand. Continued weakness likely unless upcoming US data significantly exceeds expectations.