All weaker American economic indicators stated the currency investors to include the currency prices of interest rates, and in three occasions, and first in September, the US dollar exchange rate last week.
The dollar index, which shows the value of US towards the six most important currency, dropped 0.44 percent last week, to 98.27 points.
The euro exchange rate strengthened 0.47 percent towards the dollar, to $ 1,1639. The American currency weakened in relation to Japanese, by 0.22 percent, so the price of the dollar slid to 147.72 yen.
The exchange rate of the US currency slides from the recently published employment report during July which showed a significantly smaller number of newly employed in the world’s largest economy than expected. Additionally, data on weakening activities in the American service sector in July, as well as the weakening of the real estate market demand indicate a slowdown in economic growth.
The next important information that will point to the state of the US economy will be data on the consumer prices for July, which will be published on Tuesday and will be carefully monitored to see if customs re-inflationed pressures.
“Fed now faces risks for their inflation and employment goals and will need to balance carefully in making monetary decisions,” said Friday the President of the FED in St. Louis Alberto Musalem.
Expectations on the lowering of interest rates in the United States are not only due to the disappointing report on the Employment and other indicators, but also to the head of the Feda person, after the mandate of the current President of Fed Jerome Powell in May next year, Hina reports Hina.
Trump had repeatedly criticized Powell because he did not lower the interest rates and, although he gave up the threat that he would change him before the term ends. May, he accelerated the search for his replacement. According to Bloomberg, however, Trump’s most likely candidate for Feda leaders is one of the current Governors Christopher Waller.
