Soft Data Keeps USD Rangebound as Global Markets Eye Rate Hikes

The US dollar index (DXY) remained in a tight range of 99.50-100.00 last week, despite soft economic data in July, which raised expectations for a Fed rate hike.

This week's light US data calendar is expected to keep the USD rangebound, with Friday's global PMIs potentially supporting the dollar if they show a widening growth lead for the US.

Japan's Q2 real GDP growth is expected to rise 0.5% quarter-over-quarter, posing an upside risk for the yen, while Canada faces a 50% tariff hit from the US, which could support the Canadian dollar.