The US NFP employment report published in the New York session last Friday had a critical impact on the movement of the US dollar at the end of the week.
This is due to the fact that the number of jobs added in August only recorded 22,000, far lower than the forecast of 75,000.
In addition, the unemployment rate also met the forecast to increase to 4.3% from the previous 4.2%.
The reading also followed the ADP report the previous day which also showed a slower increase in private employment.
The situation that depicts the decline in the labor sector in America has further strengthened expectations for an interest rate cut to be implemented at the FOMC meeting next week.
This has also prompted a clear decline in the trading value of the US dollar which will open up space for other major currencies to increase this week.
To add more clear guidance for the Federal Reserve (Fed), the US inflation data report will be watched this week.
The consumer price index (CPI) and producer price index (PPI) will influence the outcome of the FOMC meeting which is currently seen as leaning towards a rate cut after last week's jobs report was scrutinized.
Investors are expecting continued dismal performance for the US dollar this week, but it is important to note that current focus issues could influence changes in market sentiment.
