• The USD attracts sellers for the third straight day amid dovish Fed expectations.
• US President Donald Trump said the next Fed chair must commit to lower rates.
• Bets for two more Fed rate cuts in 2026 back the case for a further USD decline.

The US Dollar Index (DXY), which tracks the Greenback against a basket of currencies, prolongs its weekly downtrend for the third straight day and drops to a fresh low since early October during the Asian session on Wednesday. The index currently trades around the 97.80 region, down over 0.10% for the day, and seems vulnerable to slide further.

The growing acceptance that the US Federal Reserve (Fed) will ease monetary policy further in 2026 overshadows the upbeat US growth figures and continues to undermine the US Dollar (USD). In fact, the US Commerce Department reported that the world's largest economy expanded by 4.3% annualized pace during the July–September period, stronger than consensus estimates and the 3.8% rise recorded in the previous quarter. Traders, however, are still pricing in two more rate cuts by the Fed next year on the back of softer inflation and signs of a cooling US labor market.

US President Donald Trump declared that any candidate for the role of the Fed Chair must commit to lowering interest rates even when the economy is performing well. This adds to the uncertainty around the Fed's long-term policy credibility and validates the negative outlook for the DXY. However, the year-end thin liquidity warrants caution for aggressive bearish traders and positioning for a further depreciation move. Market participants now look forward to the release of the usual US Weekly Initial Jobless Claims data for some impetus later during the North American session.