The U.S. dollar got off to a quiet start on Monday, having suffered its biggest one-day fall in nearly a month after a batch of economic data led markets to temper expectations for the start of the Federal Reserve’s rate-tightening cycle.
Data released on Friday showed U.S. jobs growth slowed in July, the unemployment rate unexpectedly edged up and inflation was restrained, a mix of figures that should give the Fed room to keep interest rates low for a while yet.
“The July jobs data won’t change the Fed’s benign stance as it was about as ‘goldilocks’ as it could be,” said Shane Oliver, Head of Investment Strategy at AMP Capital in Sydney.
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