United States Dollar Index rises as strong NFP revives Fed hike bets
The United States Dollar Index (DXY) rises some 0.17% following a stellar Nonfarm Payrolls report, with the economy creating nearly three times as many jobs as expected by most economists, as revealed by the Bureau of Labour Statistics (BLS).
The United States Dollar Index (DXY) surged by 0.17% following an impressive Nonfarm Payrolls report, as the economy added 162,000 jobs in August, surpassing expectations of 56,000. The unemployment rate remained at 4.1%, below the Federal Reserve's estimate of 4.5% for the end of the year. This strong labor market performance increased the likelihood of a Federal Reserve rate hike at the September 16 meeting.
Traders are now focusing on upcoming inflation reports, which could signal the need for a rate hike. Fed Governor Christopher Waller indicated that the Fed is not in a hurry to raise rates if inflation cools down. However, a negative report could keep the next Federal Open Market Committee meeting open. The Dollar Index is currently at 99.09, with a bearish near-term outlook as it trades below key moving averages and a downtrend reference level.
USD/JPY and AUD/USD are also experiencing fluctuations based on economic data and policy expectations.
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