The US dollar fell to a one-month low last week after the U.S. Federal Reserve said the job market still had some ground to cover before it would be time to ease monetary stimulus.
Fed Chairman Jerome Powell remarked that interest rate hikes are a ways away and that the job market still had some ground to cover before the central bank begins to taper its assets.
St. Louis Federal Reserve President James Bullard said the Fed should start reducing its $120 billion in monthly bond purchases this fall and cut them fairly rapidly so the program ends in the first months of 2022 to pave the way for a rate increase that year if needed.
U.S. Economy grew a solid 6.5% in the second quarter of 2021 but it was lower than the 8.5% in forecasts.
Looking ahead, focus on the US Jobs Report on Friday. US Nonfarm Payrolls are expected to rise 900K in July from 850K in the previous month. The Unemployment Rate is expected to drop to 5.7% from 5.9%. Average hourly earnings are expected to come out 3.9%, year on a year basis.
In addition to that, this week's calendar also features U.S. data on Services PMI, ISM Manufacturing, and Non-Manufacturing PMI, as well as Factory Orders.
US ISM Manufacturing PMI for July is expected to rise slightly to 60.9 from 60.6. A better-than-expected realization may provide some support for the US Dollar.
If we look at the Eurozone, we will closely watch Manufacturing PMI for July. The data is expected to be 62.6, which is lower than the previous number of 63.4
02 Aug 21 (Mon)