This week the US dollar is being traded without significant changes in anticipation of important macroeconomic statistics. Investors are waiting for the US labor market Friday's data. The labor costs record low index in the second quarter raised questions about the Fed key rate hike in September. Thus, the US labor costs index showed the lowest growth rate in the second quarter at the level of 0.2% well below the forecast by 0.7%.
Previously, the dollar was supported by the Federal Reserve two-day meeting. The Fed noted the labor market improvement, but it was not more aggressive than it was expected when it came to the Fed rate hike timing.
In addition, we expect the euro zone important data. Economists expect the official data that will be published next will point to the Germany manufacturing industry growth production, but its slowdown in France and Italy that shows divergence in the euro area economy. However the data in Italy came out showed a growth to 55,3 from 54,1. Nevertheless the pair euro/dollar closed the trades with a decreased.
The pair GBP/USD also decreased. Earlier the pound traded without significant changes in BoE's meeting anticipation on the coming Thursday. At the same time for the first time the central bank will announce the interest rates decision and will publish its meeting minutes and the UK economy new forecasts.
The yen declined against the dollar amid the general demand for the US currency and the interest decrease in safe assets because of the stock indices strengthening.