Rumours surrounded this week going from shrinking Chinese appetite of U.S. bonds to speculation that the United States would pull out of NAFTA and while real economic indicators on Friday showed stronger U.S. inflation and retail sales it did little for the struggling US dollar. Economic growth outside of the US is accelerating and monetary policy is expected to tighten more abroad putting pressure on the greenback.
The U.S. dollar is lower against major pairs only appreciating against the Swiss franc (CHF) and the Japanese yen (JPY). The greenback got a small boost from the release of the U.S. non-farm payrolls (NFP). The United States added 148,000 well below expectations but with the hourly wages rising 0.3% but that was not good enough to counter positive economic indicators released in Europe and the stronger jobs report in Canada.
The U.S. dollar is mixed against majors after staging a comeback late in the week. The USD regained some ground even though the biggest indicator in the market the U.S. non farm payrolls (NFP) report disappointed by adding less than the expected number of jobs (156,000 versus 180,000) but the data point that had more significance was the low pace of growth of wages at 0.1%. A third rate hike for U.S. interest rates could be pushed back to next year if inflation does not pick up convincing the Federal Reserve.
The U.S. dollar is lower against most majors as the central bank summit in Jackson Hole kicked off. The Euro has regained January 2015 levels on Friday. Fed Chair Janet Yellen, in what could be her last appearance at the Wyoming gathering as chief of the U.S. central bank, focused on financial regulation with limited comments on monetary policy.
The U.S. dollar is lower against the major pairs after the political uncertainty in Washington and mixed economic fundamentals took their toll on the greenback. The first week of August will be full of economic releases with major central banks on the agenda as well as the week wrapping up with the biggest economic indicator in the market, the United States Non-farm payrolls report.
The U.S. dollar is weaker against most of the majors after a week where there was little on the U.S. economic calendar with the spotlight on Washington's rising political tensions. The investigation into Russian ties during the presidential election, the lack of momentum in policy reform put the emphasis on political uncertainty that punished the U.S. dollar.