The US dollar fell in European trade on Monday against a basket of major rivals, hitting a five-week trough amid concerns about the US debt levels.

Now investors await important remarks by several Fed officials as they look for more clues on the odds of multiple Fed rate cuts this year.

The Index

The dollar index fell 0.4% to 98.69, the lowest since April 22, with a session-high at 99.16.

The index lost 0.8% on Friday, the fourth loss in five days amid a heavy selloff wave.

The index gave up 1.9% last week, the first weekly loss in five weeks, and the heftiest in six weeks on US financial stability concerns.

US Debt

US President Donald Trump said on Sunday that his tax reform bill will likely undergo big changes in the Senate.

According to the Congressional Budget Office, the bill will add $3.8 trillion to the governments $36.2 trillion debt pile in the next ten years.

The huge US debt burden is back in the spotlight after Moodys US credit rating downgrade last week and weak demand on government notes.

US Rates

According to the Fedwatch tool, the odds of a June 0.25% interest rate cut by the Federal Reserve stood at just 6%.

The odds of a July rate cut stood at 25%.

Markets now expect 50 basis points of total rate cuts by the end of the year, starting October.

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