US Dollar Surges on Strong August Employment Data
The US dollar received a boost on Friday due to stronger-than-expected employment data for August. The non-farm payroll (NFP) figure rose to 162k, surpassing even the most optimistic expectations, while the unemployment rate remained at 4.1%. This development is seen as a positive sign for the US economy and may pave the way for the Federal Reserve to raise interest rates in its next meeting.
Currently, the market prices in a 57% chance of a rate hike in September, according to FFF. The release of the US Consumer Price Index (CPI) data for August on Friday will be the next major test for the dollar.
In other news, European traders are expected to be busy this week, with several key events scheduled, including the Eurozone's revised GDP rates for Q2 and the European Central Bank's interest rate decision. A rate hike is widely anticipated at this stage, but if the ECB signals that it will not raise rates further, the euro may weaken.