Friday continued to give US dollar strength, even with worse-than-expected non-farm employment change. However due to the July figures being revised up, and unemployment continuing to drop, this allowed the US dollar to strengthen further. Average hourly earnings – a key economic indicator for the US economy – also showed further improvements.
This week could start off slowly for the US economy, with a Labour Day bank holiday on Monday. We will see the first piece of significant data out on Wednesday, with JOLTS job openings expected to show slight growth on the previous month’s figures. Weekly unemployment change on Thursday is also expected to show a stable figure. Friday will see the release of producer inflation data, which is expected to show its second negative figure in the last six months. Also released on Friday will be consumer sentiment data, which is expected to register a decline. With these discouraging figures due, we could see a turn in the US dollar’s fortunes.