Dollar Soars as US Jobs Data Exceeds Expectations
The US Dollar strengthened against the Euro after the release of the upbeat United States employment report. The Nonfarm Payrolls (NFP) rose by 162K in August, exceeding expectations for a 56K increase. This strong jobs data has revived expectations that the Federal Reserve may raise interest rates at its September 15-16 meeting.
The US Treasury yields also moved higher across the curve, with the benchmark 10-year yield retesting 4.81%, its highest level since October 2023. The Unemployment Rate held steady at 4.1% as expected.
On the other hand, weaker-than-expected Eurozone Retail Sales added some pressure on the Euro. However, expectations that the European Central Bank will raise interest rates at its September 9-10 meeting could limit the Euro's losses.