Dollar falls to four-year low vs euro with Fed rate decision on tap

Group 1 - The U.S. dollar has fallen to a four-year low against the euro, driven by expectations of a Federal Reserve interest rate cut this week [1][2] - The euro increased by 0.9% to $1.1867, marking its highest level since September 2021, while the U.S. dollar index dropped 0.7% to 96.636, the lowest since July 1 [1][2] - Investors are anticipating a 25-basis-point rate cut by the Fed, influenced by softening labor market data [2][3] Group 2 - The dollar is under pressure as investors expect a dovish message from the Fed, with a focus on supporting labor markets [3][4] - Fed Chair Jerome Powell is scheduled to hold a press conference following the release of the Fed's policy statement [3] - Despite a rise in U.S. retail sales in August, concerns about economic growth persist due to labor market weakness and rising goods prices from tariffs [5][6] Group 3 - The Bank of England may ease concerns about inflation as the U.K. jobs market shows signs of slowing, with wage growth decreasing to 4.7% [6][7] - The number of workers on payrolls in the U.K. has fallen for seven consecutive months, indicating potential economic challenges [7]