Dollar Sinks to Three-Month Low Amid Weak Job Data
The US Dollar Index (DXY) hit a three-month low on Monday after disappointing economic reports showed a decline in American employment. The Bureau of Labor Statistics reported that nonfarm payrolls fell by 23,000 in July, with a total downward revision of 103,000 jobs for May and June. The national unemployment rate reached 4.1%. Consumer spending slowed as retail sales dropped 0.6% in July.
Annual consumer price growth cooled to 3.4%, while core inflation reached 2.5%. These weak numbers led traders to cut expectations for a September rate hike down to 30%, pulling down the dollar spot index for a third straight trading session.
Gold prices rose to $4,407 per ounce, completing a 9.3% gain over the past month. In contrast, Bitcoin (BTC) lost 0.5% of its value and traded near $64,038. Trading activity across digital asset platforms remained quiet, with Bitcoin logging $12.6 billion in daily trading volume.
The recent inflation and jobs reports led investors to choose precious metals over crypto tokens. The market is now focusing on the release of the July Federal Open Market Committee (FOMC) meeting minutes, which will clarify how close the central bank came to raising rates.