020 7898 0500The dollar displayed plenty of twists and turns last week, with tensions between North Korea simmering in the background and easing throughout the week, the dollar closed on slightly weaker than expected jobs data. The Labour Department showed non-farm payrolls increased by 156,000 last month, below the forecasted 180,000. Nevertheless, this is said to be strong enough to support the idea of a rise in interest rates from the Federal Reserve and so, the saga continues.
Looking to the week ahead, we have a much lighter schedule with Labour Day shortening the week to just 4 days. The main data piece of note is the ISM survey of the key non-manufacturing sector. This fell to an 11-month low in July but is forecast to edge higher for August, which should give us a good indication of how the economy performed in August. With minimal data on the horizon, the dollar could be particularly sensitive to political changes such as this weekend’s event in both North and South Korea.
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