The Greenback faced pressure from increasing market expectations of a Fed rate cut, leading to a downward trend. Lower yields and concerns about the US economy further contributed to the Dollar’s decline throughout the week.
The US Dollar Index (DXY) saw modest gains on Friday but closed the week lower due to downward pressure on US yields. Upcoming economic events include Wholesale Inventories and Consumer Inflation Expectations on September 9, NFIB Business Optimism Index and API’s report on US crude oil inventories on September 10, and more data releases throughout the week.
EUR/USD struggled to maintain post-NFP gains, while GBP/USD experienced losses despite a brief rebound. USD/JPY hit four-week lows, and AUD/USD dropped to three-week lows amidst economic uncertainties.
Key Events and Economic Indicators to Watch
Key events include the final Inflation Rate in Germany on September 10, ECB meeting on September 12, UK labor market report on September 10, and various economic releases throughout the week impacting currency pairs.
Insights from Central Banks and Economic Outlook
Upcoming speeches from central bank officials, such as the ECB’s McCaul and Lagarde, as well as key meetings like the ECB meeting on September 12, will shape monetary policies and provide insights into future economic trends.