Forex Today: US Dollar firms ahead of UK jobs and a midweek Fed decision

The US Dollar Index (DXY) started the week maintaining a firm position above the 99.00 level, trading around 99.40. This strength comes from expectations of an imminent rate decision by the Federal Reserve (Fed), making the Greenback supported across the board. On Tuesday, the Empire State Manufacturing Index is anticipated to fall to 14.75 from 20.6, and the ADP Employment Change 4-week average will be released. However, the primary focus remains on the Fed's decision on Wednesday.

During the week, gold retreated, and growth-sensitive currencies weakened, while the Pound held its ground. The US Dollar showed the strongest performance against the New Zealand Dollar. The USD/JPY pair reclaimed the 154.00 level, while the EUR/USD slipped towards the mid-1.1500 range. On Wednesday, the UK labor market report, which includes average earnings and the ILO unemployment rate, will be crucial for GBP/USD.

Later, Eurozone inflation data from France and Spain, along with Germany's ZEW survey, will be released, potentially showing improving economic sentiment in the Eurozone. USD/JPY rallied, reclaiming the 154.00 handle, as the Yen weakened. Japan's August trade figures showed a slowdown in exports. AUD/USD struggled to hold support, easing back towards 0.7150.

China's August economic data, including Industrial Production and Retail Sales, will be released, with growth expected to pick up to 4.8% and 0.8%, respectively. Gold dipped towards the $4,300 mark, while WTI Oil advanced above the $100.00 per barrel level. Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.