Deteriorating economic indicators reduce odds of a September Fed rate hike, pressuring the greenback ahead of North American trading.
The US Dollar extended losses early Thursday, weighed down by a string of weaker-than-expected economic reports since July’s payrolls miss. Data showing easing price pressures and declining retail sales have led markets to scale back bets on a Federal Reserve rate increase next month.
In late July, traders priced in a near-certain chance of a hike, but that probability has since fallen sharply. The shift reflects growing concerns over slowing momentum in the world’s largest economy, with recent figures fueling expectations of a more cautious Fed stance.
The currency showed signs of stabilization ahead of the North American session, though downside risks persist amid ongoing data scrutiny.