Poor economic data for US released on Friday meant the week ended on a low for the dollar – dampening the expectations for a rate hike in the future.
Consumer Sentiment Index data fell to 93.1 in July from 93.3 in June, despite expectations that it would rise to the 94.0 level. The Labour department also noted that the cost of employment rose only 0.2% – which is the lowest gain since 1982.
Looking at the week ahead Monday and Tuesday are relatively quiet for the dollar – but on Wednesday we will see the release of the Non-farm data, and Thursday afternoon will bring unemployment claims, which is expected to come at 269,000, higher than previous levels. Finally on Friday the Non-farm employment change and Unemployment rate data will be released, and if these come out positive as expected, we could see a rise in the value of the US dollar against a basket of major currencies.