Why the Dollar Hit a 3-Month Low and Bitcoin Only Moved 0.7%
The dollar fell to a 3-month low on Monday. Traders have stopped believing the Federal Reserve will raise rates again. Bitcoin (BTC), which normally thrives on a weak dollar, moved 0.7%.
Gold did far better. It has gained 9.3% in a month. Bitcoin has lost 0.8% over the same stretch. The same news reached both assets, and only one traded on it.
Why the Dollar Hit a 3-Month Low
The US economy stopped creating jobs in July. Payrolls fell by 23,000, the Bureau of Labor Statistics (BLS) reported.
The revisions hurt more than the headline. May and June were cut by a combined 103,000 jobs. Unemployment now sits at 4.1%.
Shoppers pulled back too. Retail sales dropped 0.6% in July to $763.6 billion, according to the Census Bureau. June had risen 0.2%.
Inflation cooled at the same time. Consumer prices rose 3.4% in the year to July. Core prices, which exclude food and energy, rose 2.5%.
Traders reached the obvious conclusion. Odds of a September hike fell to roughly 30%, down from about 75% in late July. That is the lowest reading since the Fed's June decision, Brown Brothers Harriman said.
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