After a poor week last week, the dollar strengthened over the weekend as was still strong yesterday. There were no data releases for the US yesterday, as it was Labour Day, and it’s a light week for data overall. However, results of the Consumer Price Index will be released on Friday.
President Trump has raised the prospect of ‘decoupling’ the US economy from China, a comment which has caused demand for safe-haven currencies to increase. Essentially, this is a suggestion to stop trading with China and to break ties with its economy, a move that many fear would be a self inflicted wound.
There will be three Presidential debates ahead of the US election, the first of which will be held at the end of September. It will be interesting to see if the outcomes of these will have any bearing on the dollar.
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