Week Ahead: Downward Data Surprise Stretch the US Dollar's Momentum Indicators

The combination of a loss of US jobs in July and softer inflation gauges, and an unexpected decline in July retail sales saw the derivatives market downgrade the chances that the three hawkish dissents last month will manage to convince their colleagues to hike rates at next month's FOMC meeting. The Fed funds futures finished last week with a little less than eight basis points of tightening next…