The dollar fell to its weakest level in three months as investors scaled back expectations for further Federal Reserve interest-rate increases following a run of softer U.S. economic data.

The Bloomberg Dollar Spot Index dropped for a third day, touching its lowest level since May 15 after falling as much as 0.3%. The decline came as traders cut the chance of a Fed hike next month to just one-in-three, down from about 75% in late July. One-month options have turned against the dollar for the first time since late February.

“We’re seeing some continued unwinds of lingering dollar longs as chances of a Fed hike this year diminish further,” said Erik Nelson, a strategist at Wells Fargo Securities.

The moves follow soft July figures on employment and inflation, as well as weaker-than-expected U.S. retail sales. While there are few major releases this week that would likely trigger a material dollar move, PMI data due on Friday from S&P Global may offer the next meaningful test.

Non-commercial traders had been reducing their bullish dollar wagers in the past two weeks, according to Commodity Futures Trading Commission data for the week through Aug. 11.

“We’re watching PMIs on Friday to see if that trend continues as stronger data could help to reverse the dollar’s slump,” said Andrew Hazlett, a foreign-exchange trader at Monex Inc. “FOMC minutes on Wednesday is relevant as well, but anticipate that it will be less impactful.”

Traders will be keen to hear remarks from Fed Chairman Kevin Warsh at the annual Jackson Hole symposium later this month. His policy of not offering guidance on when or whether the central bank will adjust interest rates has puzzled many investors.

The meeting will be crucial because “that’s typically the time when a Fed chair lays out bold policy changes,” said Kristina Hooper, chief market strategist at Man Group. “This particular Jackson Hole is going to be so much more important because there’s a lot of mystery around the new Fed chair,” she said.

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