On August 17, the U.S. Dollar Index (DXY) fell to 99.294, the lowest in 10 weeks; the euro against the U.S. dollar rose to a two-month high of 1.1614, while the pound reached a three-month high of 1.3571. Recent U.S. employment, retail, and inflation data have been weak. CME FedWatch shows the probability of a Fed rate hike in September dropped sharply from 55% a week earlier to 31%. In contrast, the market is pricing a 84% chance of a September rate hike by the ECB. A rate hike by the Bank of England before year-end is also fully priced. The widening divergence in monetary policy between the U.S. and Europe is continuing to weigh on the dollar. $DXY $EURUSD $GBPUSD for information purposes only and does not constitute investment advice.