FOMC Minutes Set to Steer Markets After DXY Suffers Fresh Lows

The US Dollar Index (DXY) fell to fresh lows last week, extending its decline after four consecutive soft US data prints. The preliminary Michigan Consumer Sentiment survey came in at 51 in August, below forecasts of 55.2, and added to the weaker inflation and retail sales reports from earlier in the week.

The disappointing numbers further reduced expectations for a September Federal Reserve (Fed) rate hike. As a result, bets on a hike have faded further.

This week will focus on the release of the Federal Open Market Committee (FOMC) Minutes from the July meeting, which may provide insight into the hawkish split that caused market volatility last month.