The dollar weakened against major currencies as traders bet on a Fed rate cut, following NY Fed chief John Williams’ remarks. President Trump’s push for more influence on monetary policy added pressure. Fed Governor Cook sued Trump, stating he lacks power to remove her. Data showed slight GDP growth and improved jobless claims, but the dollar remains uncertain pending upcoming data and Fed decisions. France’s confidence vote and Williams’ comments also influenced currency markets.

The euro and sterling rose against the dollar despite France’s political uncertainty. Williams suggested a rate cut may be imminent, pending upcoming economic data. Key releases before the Fed meeting include the PCE price index and monthly payrolls report. Traders predict an 85% chance of a rate cut next month. Non-farm payroll details could sway the Fed’s decision.

Trump’s influence on the Fed and potential legal battles with Governor Cook led to lower short-term yields. The dollar index fell, and against the yen, the dollar declined. Japan’s trade negotiator canceled a trip to Washington, delaying a $550 billion investment pledge announcement. Offshore yuan reached a November low against the dollar. Further discussions on tariff deals are needed between the U.S. and Japan.

Read more at Yahoo Finance: Dollar weakens as September Fed cut bets grow