The dollar index held at 99.4 on Tuesday after touching a two week-low on Monday, as expectations for a Federal Reserve interest rate cut increased following dismal manufacturing data. The ISM Manufacturing PMI showed the factory activity shrank for the ninth consecutive month and at the fastest pace in four months, intensifying calls for further rate cuts. Traders are now pricing in an 88% chance the Fed will lower rates by 25bps at its meeting next week. Meanwhile, President Donald Trump said on Sunday he had chosen the next Fed Chair, with reports pointing to White House National Economic Council Director Kevin Hassett as a leading contender. Hassett is known for favoring lower interest rates, which is in line with Trump's wishes. Investor focus is now on Fed Chair Jerome Powell’s comments later today, which may provide additional guidance on the central bank’s policy outlook.