The dollar is looking mixed this morning after a disappointing Non-Farm Payroll release on Friday has increased speculation of an interest rate cut from the Federal Reserve. Non-Farm Payrolls increased by 130,000 last month, falling short of expectations, and created 20,000 fewer jobs in June and July than previously reported.
In his speech on Friday, Federal Reserve Chairman, Jerome Powell, said that the Fed will continue to “act as appropriate” to support economic expansion. He also added that “there is a range of views” over how to respond to geopolitical and economic risks. The Fed are due to hold their interest rate decision meeting next week. US inflation and retail sales data drop in on Thursday and Friday this week, which could give further indication of how the rate decision will play out.
In US-China trade news, friction between the two nations has led to a sharp decline in China’s exports to the United States. On Friday, White House economic advisor, Larry Kudlow, said that the US wants “near term” results when the two sides meet in Washington this month, but added that the overall trade conflict could take years to resolve.
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