US Dollar Slips as Jobs Data Stirs Fed Rate Speculation

Here’s this week’s overview of the US Dollar:

• In the past week, the US Dollar Index weakened by 0.15% against a trade weighted basket of its peers.

• The August payrolls report released on Friday showed that the US economy added fewer jobs than expected, although the unemployment rate edged lower and wage growth remained steady.

• Still, FOMC members continue to indicate readiness for easing policy amid concerns that a cooling labour market could accelerate into something more serious if policy adjustment comes too late.

• Markets remain divided on whether the Fed will lower rates by 25 or 50 basis points at the September meeting.

• Investors now look ahead to key inflation data this week for further clarity on the rates path.