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Dollar slips below 100 as CPI and PPI loom this week

Markets have shifted after July payrolls showed a smaller job loss than initially expected, raising uncertainty over whether the post-NFP dollar sell-off extends.

Reported · Written up by our desk · Major Pairs

FXStreet reports the US Dollar Index fell below the 100.00 level after Friday’s session, with July nonfarm payrolls showing the US economy shedding 23K jobs versus an 80K gain forecast. The June figure was revised down to 20K, and average hourly earnings eased to 3.2% year on year. According to FXStreet, traders had been pricing a hawkish Federal Reserve through late July, but that view reversed during Friday’s trading. The outlook for further dollar repricing now depends on Wednesday’s Consumer Price Index, where consensus calls for 3.4% year on year headline and 2.5% core. FXStreet said two Fed speakers are scheduled for Thursday, with Hammack and Barkin listed on the calendar. The week also includes additional US data such as Producer Price Index, retail sales, and the preliminary Michigan consumer sentiment survey, while other major events include an RBA meeting on Tuesday and UK second-quarter GDP on Thursday. In Europe, FXStreet noted the EUR/USD pair ended the week above 1.1550 near two-month peaks, driven largely by US data expectations. The Eurozone calendar includes final inflation figures for Germany and Italy on Wednesday, industrial production on Thursday, and a Friday preliminary second-quarter GDP expected at 0.4% quarter on quarter and 1% year on year.

Latest closeEUR/USD 1.152 ▼0.3%|Dollar index 99.98 ▲0.3%

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