The United States Dollar Index remains under pressure as traders reassess expectations for a hawkish Federal Reserve stance.

• The US Dollar edged lower toward the 100.80 level as traders slightly scaled back expectations for a hawkish Federal Reserve.
• The US economy added 57K new jobs in June, falling short of the 110K forecast.
• Investors are now turning their attention to the US ISM Services PMI report, scheduled for release on Monday.

The US Dollar Index (DXY), which measures the Greenback against a basket of six major currencies, edged slightly lower to around 100.80 during Friday’s Asian session. The US Dollar faced renewed pressure after traders scaled back expectations for a hawkish Federal Reserve following the release of June’s United States Nonfarm Payrolls (NFP) report on Thursday.

Data from the CME FedWatch Tool showed that the probability of the Fed delivering at least one interest rate hike at the September meeting fell to 53.2%, down from nearly 64% on Wednesday.

Market participants reduced hawkish Fed expectations after the June NFP figures came in well below forecasts. The US economy added 57K jobs during the month, significantly missing the 110K estimate. In addition, May’s payrolls figure was revised lower to 129K from the previously reported 172K. Despite the weaker hiring data, the Unemployment Rate declined to 4.2%, compared with expectations and the prior reading of 4.3%.

Meanwhile, Average Hourly Earnings — a key indicator of wage growth — increased 3.5% year-over-year, matching market expectations and improving from the previous 3.4% reading.

Looking ahead, investors will closely monitor the US ISM Services PMI report for June, due on Monday. The data is expected to be a key driver for the US Dollar, as the services sector represents roughly two-thirds of the US economy.