"The US dollar traded within a narrow range on Monday, hovering near multi-month lows, and stabilizing after a decline as last week's weak payrolls data intensified expectations of policy easing. The greenback posted losses on Friday when nonfarm payrolls showed that only 22,000 jobs were created in August, and the unemployment rate climbed to 4.3%. The figures cemented the view that the labour market is losing steam, leaving the dollar vulnerable ahead of this week's upcoming data."
"Attention now turns to the producer price index on Wednesday and the consumer price index on Thursday. Markets see a quarter-point interest rate cut at the Fed's September 16-17 meeting. FOMC officials have signalled readiness to act, adding to the downward pressure on the dollar and Treasury yields. Treasury yields mirrored the dollar's weakness, with the 10-year staying at its lowest level since early April. A softer inflation print this week could create downward pressure by reinforcing expectations that further easing is warranted."
US dollar traded within a narrow range near multi-month lows, stabilizing after weak payrolls intensified expectations of policy easing. Nonfarm payrolls showed only 22,000 jobs created in August and the unemployment rate rose to 4.3%, cementing views that the labour market is losing steam and leaving the dollar vulnerable. Attention shifts to the producer price index on Wednesday and the consumer price index on Thursday. Markets expect a quarter-point interest rate cut at the Federal Reserve's September 16-17 meeting. FOMC officials signalled readiness to act, adding downward pressure on the dollar and Treasury yields. Softer inflation prints could reinforce expectations for further easing.
Read at London Business News | Londonlovesbusiness.com
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