The US dollar is currently experiencing some volatility after reaching its lowest level this year and remains in a pronounced bearish trend that could continue. This downturn follows dovish comments from Federal Reserve Chair Jerome Powell, who suggested that more aggressive rate cuts may be on the horizon.

The anticipated Fed rate cuts are expected to continue weighing on the dollar in the near term. Powell and other Fed officials have indicated that rate cuts might commence as early as September, driven by concerns about the labor market and the need to support economic growth.

Treasury yields have adjusted to reflect this outlook, and could further decline if a 50 basis point cut materializes, even though the market is pricing a lower probability than for a 25 basis points cut at the next meeting. The upcoming US PCE data could further impact the dollar and general market sentiment. Overall, the anticipated easing cycle is expected to keep both the greenback and Treasury yields under pressure.