With the U.S. recovery clearly faltering, the dollar appears likely to go only one way against its major competitors: down.
Friday's nonfarm payrolls data for July came in well below economists' estimates. The release is the most glaring setback in a recent string of reports that cast further doubt on the strength of the recovery in the world's biggest economy for the second half of 2010.
The chances the Federal Reserve will deploy new measures to support the economy—mere murmurs at midweek—have increased. Tuesday's rate decision and accompanying statement will take center stage in framing investor sentiment toward the greenback.
