The dollar fell after Fed Chair Powell hinted at a possible rate cut in September but didn’t confirm. Euro rose 1.06% to $1.1728, yen fell 1.08% to 146.77. Market strategist calls Powell’s message dovish, with 85% odds of a rate cut in September and 54 basis points of cuts by year-end.

Traders raise expectations for a Fed rate cut in September after weak July jobs report. Data shows limited inflation increases from tariffs, but hotter-than-expected producer price inflation tempers view. Labor market data now crucial for future Fed policy decisions, with a focus on second half of mandate.

Concerns over Fed independence rise as Trump threatens to fire Fed Governor Lisa Cook over mortgage allegations. Trump’s criticism of Powell’s rate policies fuels speculation of a more dovish Fed. Powell may remain on board, limiting Trump’s ability to reshape Fed policies. Sterling and Australian dollar strengthen, bitcoin rises 4.10% to $117,035.

Read more at Yahoo Finance: Dollar tumbles as Powell signals possible September rate cut