The recent data release from last week did not reveal any surprises and aligned closely with what was anticipated. The key inflation measure in the US, the Personal Consumption Expenditure (PCE) data for August, offered some comfort to foreign exchange traders.

Despite strong consumer spending, the data indicates that inflation remains elevated due to demand, reflecting a robust momentum in the US economy driven by consumer demand and solid economic growth.

Overall, the sentiment regarding the US dollar remained optimistic following Fed Chairman Powell’s more hawkish comments. He emphasized the need for the Federal Reserve to strike a balance between inflation and the labour market when making interest rate decisions.

The latest jobless claims data, which exceeded expectations, contributed to the strengthening of the US dollar. Meanwhile, oil emerged as the biggest gainer last week, appreciating by nearly 5 percent. This may be attributed to a policy change in the Eurozone concerning Russian oil purchases, which has decreased and, in turn, supported rising oil prices.

This week, attention will shift to the Non-Farm Payrolls (NFP), unemployment rate, and wage data. The market suggests that the recent decline in employment........

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