USD Mired in Weakness by Korman Tam

t 4:30 AM UK August core PPI m/m (exp 0.2%, prev 0.2%)
UK August core PPI y/y (exp 2.4%, prev 2.2%)
At 2:00 PM US July Consumer Credit (exp $8.0 bln, prev $13.1 bln)

The greenback kicks off the week on softer footing, still reeling from the unexpectedly disappointing August jobs data -- which saw non-farm payrolls drop by 4k. With the FOMC policy meeting a little over one week away, the dollar will remain pressured amid expectations for a Fed rate cut in the face of deteriorating US economic fundamentals.

Data slated for release from the US include July consumer credit, trade balance, August retail sales, industrial production, capacity utilization, University of Michigan sentiment survey and July business inventories. Particular focus will be on the retail sales figures as a gauge on how resilient the US consumer is in the face of the recent financial market volatility and mortgage market turmoil.

The calendar for the session ahead is light, with the release of UK August PPI and core PPI. The core PPI figures are seen largely unchanged at 0.2% m/m and the annualized figure up slightly to 2.4%