Weaker US economic data pushed the US Dollar Index below 100.00, reducing expectations for a September Fed rate increase.
The US Dollar Index (DXY) fell below 100.00 on Friday, extending losses after a fourth consecutive weak US data release. August’s preliminary Michigan Consumer Sentiment dropped to 51 from 55.2, missing forecasts and following softer inflation and retail sales figures earlier in the week.
Markets have scaled back bets on a September Federal Reserve rate hike, with no major US data scheduled for the coming week. Attention shifts to Wednesday’s FOMC Minutes from the July meeting, which may clarify the hawkish dissent that rattled markets last month.
Elsewhere, the UK releases jobs, inflation, and retail sales data, while Japan reports second-quarter GDP on Sunday and China publishes July activity figures on Monday.