Dollar Falls to 3-Month Low as US Economy Disappoints

The US economy's performance in July led to a decline in job creation, with payrolls falling by 23,000. This was accompanied by a drop in retail sales and a cooling of inflation rates.

The Bureau of Labor Statistics reported that unemployment now sits at 4.1%, while consumer prices rose 3.4% in the year to July. Core prices, which exclude food and energy, increased by 2.5%.

Traders have lost confidence in a potential interest rate hike by the Federal Reserve, with odds of a September hike falling to around 30%. This has led to a decline in the dollar's value, with the Bloomberg Dollar Spot Index hitting its weakest level since May 15.