Greenback May Have Topped; US NFP This Week
Fundamental Forecast for the US Dollar: Neutral
- The July Federal Reserve meeting changed the trajectory for the US Dollar for the rest of 2022.
- US jobs data due at the end of the week are expected to remain strong, though the US unemployment rate may have stopped falling amid the Fed’s rate hikes.
- According to the IG Client Sentiment Index, the US Dollar has a bearish bias heading into the first week of August.
US Dollar Week in Review
The US Dollar (via the DXY Index) dropped last week for the second consecutive week, losing -0.67%, the first back-to-back weekly pullbacks since the middle of May. The catalyst was of little surprise, a July Federal Reserve meeting that suggested policymakers are shifting into a less aggressive stance moving forward. The two largest components of the dollar gauge were the leaders, with EUR/USD rates adding +0.11% and USD/JPY rates falling by -2.11%. GBP/USD rates did well too, adding +1.39%. It’s…