After a strong week, the dollar fell slightly on Friday as the markets recovered, and treasury yields declined.
The dollar’s strength last week was largely due to a ‘hawkish’ shift from the Federal Reserve. Federal Reserve Chair Jerome Powell suggested that he now believes that inflation may not be transitory like he originally thought.
It’s a busy week for US data, with balance of trade figures tomorrow and the all-important non-farm payrolls on Friday. The economy added 235,000 jobs in August, a disappointing figure that fell below expectations. The data on Friday is expected to show an improvement for September, with 500,000 jobs predicted.
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