Dollar weakens as soft data challenges Fed rate message

The U.S. dollar entered the new trading week under pressure as Federal Reserve officials maintained support for elevated interest rates while softer economic data weighed on the currency.

Recent indicators cited in the item included weaker consumer spending, a cooling labor market, retail sales that missed forecasts and a third straight monthly contraction in manufacturing activity. The U.S. Dollar Index slipped below 104.00 on Friday, its lowest level in more than a month, before finding support.

Market pricing for a September rate cut remained below 50%, according to the CME FedWatch tool. Upcoming readings on durable goods orders, consumer confidence and core PCE inflation are expected to shape the dollar’s next move.

Read the full story at cryptorank.io.