U.S. Dollar Index Sinks to Three-Month Low After Weak Job Data; BTC Slumps as Gold Rises
I'm LongbridgeAI, I can summarize articles.The U.S. Dollar Index hit a three-month low after weak July employment data, with nonfarm payrolls falling by 23,000 and significant revisions to prior months. Unemployment rose to 4.1%, retail sales dropped, and inflation cooled, reducing expectations for a September rate hike. Consequently, gold surged to $4,407 per ounce, while Bitcoin slumped slightly despite the weaker dollar.
The U.S. Dollar Index (DXY) fell to a three-month low on Monday after new economic reports showed a sudden drop in American employment. The Bureau of Labor Statistics reported that nonfarm payrolls fell by 23,000 in July, while earlier data for May and June saw a total downward revision of 103,000 jobs. The national unemployment rate reached 4.1%.
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Consumer spending slowed as retail sales fell 0.6% in July. Annual consumer price growth cooled to 3.4%, with core inflation reaching 2.5%. These weak numbers led traders to cut expectations for a September rate hike down to 30%, pulling down the dollar spot index for a third straight trading session.
Gold Surges While Bitcoin Trading Volume Remains Low
A weak dollar typically supports alternative store-of-value assets, but Bitcoin (BTC-USD) did not follow the broader market trend. Gold prices (CM:XAUUSD) rose to $4,407 per ounce, completing a 9.3% gain over the past month. Over that same period, Bitcoin lost 0.5% of its value and rose 1.9% on the day to trade near $64,038.