The US dollar faced sustained pressure as markets digested mixed signals from Federal Reserve officials regarding the interest rate outlook. Investors are now focused on the upcoming release of the PCE price index on Friday – the Fed’s preferred inflation gauge – which is expected to provide critical guidance for future monetary policy. Lawmakers are working to avert a potential government shutdown by the 30 September deadline, creating a fresh layer of uncertainty. This bearish scenario is technically supported by the MACD indicator, whose signal line is around the zero line and pointing decisively downwards. This outlook is confirmed by the Stochastic oscillator, with its signal line currently below 50 and falling sharply towards 20.