{
  "id": 6289255,
  "title": "US Dollar: Fed hold tempers dollar rebound – NBC",
  "url": "https://urgent.news/2026/09/08/us-dollar-fed-hold-tempers-dollar-rebound-nbc",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-08T15:11:05.000Z",
  "source": {
    "name": "FXStreet",
    "slug": "fxstreet",
    "url": "https://www.fxstreet.com/news/us-dollar-fed-hold-tempers-dollar-rebound-nbc-202609081511"
  },
  "original_language": "en",
  "account": "In Q3, the US Dollar (USD) has shown signs of weakening, despite the United States economy maintaining full employment levels. Stéfane Marion and Kyle Dahms of National Bank of Canada (NBC) suggest that soaring long-term Treasury yields are tightening financial conditions, making it harder for the Federal Reserve (Fed) to consider further interest rate increases. Their fixed-income team anticipates the Fed to maintain a hold on policy rates throughout the year, keeping the trade-weighted Dollar near recent lows.\n\nThe Fed Chair Kevin Warsh recently acknowledged that recent news can easily be misinterpreted as current market realities. This sentiment is particularly pertinent in the bond market. Despite some investors expressing concerns over potential additional Fed tightening, the central bank is still expected to stay on hold for the remainder of the year. A primary reason for this expectation is the substantial rise in long-term yields, which has already put pressure on financial conditions. However, much of this increase seems to be due to a higher term premium, driven by a deteriorating fiscal situation rather than a renewed surge in inflation expectations.\n\nThe U.S. labor market has been unexpectedly strong in August, with payrolls surging by 162,000, far surpassing the consensus forecast of 55,000. The unemployment rate remained at 4.1%, lower than the Congressional Budget Office’s estimate of the non-accelerating inflation rate of unemployment (NAIRU), indicating that the U.S. economy is at or beyond full employment. This robust labor market performance has not negatively impacted the USD.\n\nNotably, the weakening of all major currencies, except the Swiss franc, against the USD in Q3 has been broad-based. AUD/USD has been trading above 0.7200 in the Asian session on Tuesday, near its highest level since May 14. The USD faces pressure due to a strengthening Japanese Yen, which outweighs support from hawkish Fed predictions and geopolitical tensions. This, combined with optimistic expectations for another rate hike by the Reserve Bank of Australia (RBA) later in the month, benefits the Australian Dollar. However, mixed China trade balance data limit the AUD/USD pair.",
  "summary": "National Bank of Canada's (NBC) Stéfane Marion and Kyle Dahms note that the US Dollar (USD) has weakened broadly in Q3 even as the United States (US) economy remains at full employment.",
  "key_points": [
    "US Dollar shows signs of weakening despite full employment",
    "Fed expected to maintain hold on policy rates all year",
    "Strong US labor market not impacting USD negatively"
  ],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}