Dollar Falls as Soft US Data Points Dim Rate Hike Bets
The US Dollar Index (DXY) fell to fresh lows after a weak economic performance in the United States, including a decline in consumer sentiment and retail sales. The soft data points led to a decrease in bets on a September Federal Reserve rate hike.
This week, the Dollar faces no top-tier data of its own, but the FOMC Minutes from the July meeting will be closely watched for insight into the hawkish split that unsettled markets last month. Wednesday's minutes may provide detail behind the Fed's decision-making process and could impact market sentiment.
Other economic indicators are also on tap this week, including UK inflation data, which could have a significant impact on the British Pound (GBP). A hot inflation print would make it more challenging for the Bank of England to maintain its current monetary policy. The Eurozone calendar is relatively light, with only the German ZEW survey and flash PMIs due.