The dollar index hovered around 97.8 on Monday, near one-month lows, as traders awaited a series of labor market releases this week that could shape the Federal Reserve’s next policy decision. Key reports include Friday’s August jobs data, alongside figures on unemployment, job openings, and private payrolls. Investors also weighed Friday’s PCE price index, which confirmed continued price increases and added uncertainty to the outlook for rate cuts. Still, markets are pricing in about an 88% probability that the Fed will lower rates by 25 basis points later this month. On the trade front, a federal appeals court ruled that most of President Donald Trump’s reciprocal tariffs are illegal, giving the administration until October 14 to appeal to the US Supreme Court. Trading activity is expected to be muted, with US markets closed for the Labor Day holiday.