What is the dollar waiting for this week The US dollar is entering a crucial week as the markets await a number of important economic data and the Fed's decision on interest rates. Retail sales for August are expected, along with housing and building permits data, as well as weekly unemployment claims. All these figures come in the same week that the Fed will announce its decision on interest, which doubles the sensitivity of the market to any surprises in the results. This overlap makes the movement of the dollar directly related to the combination of growth and employment data on the one hand, and the Fed's trends on the other. Thus, any deviation from expectations both in the data and in the interest decision may trigger a strong wave of volatility in the currency, bond and commodity markets. Interest, Powell's statements and their impact on the markets Although expectations indicate a limited reduction in interest rates, the greatest impact will be determined by Jerome Powell's statements after the meeting and updating the Fed's forecasts for the coming period. If Powell's statements come in a lenient tone and indicate a possible further cut, the dollar could come under noticeable selling pressure, especially as bond yields fall. If he focuses on the strength of consumer spending or the stability of the labor market and keeps the door open to a limited tightening, this may limit and even support the dollar's losses in the short term. These decisions coincide with the release of key economic data that increases the reaction force in the markets, and makes the relationship between the dollar and yields closely linked, which increases the pace of volatility during this week.
