Dollar Falls on Jobs Data Anticipation Amid Warsh's Hawkish Comments

The US dollar edged lower on Monday as traders await key jobs and inflation data due later this week. This comes after Federal Reserve Chairman Kevin Warsh's hawkish comments on Friday renewed bets on a September interest rate hike.

Warsh stated that the Fed would 'have work to do' if policymakers don't get the confidence they need that inflation is heading down to 2%. This has led to a significant increase in expectations for a rate hike, with Fed funds futures traders now pricing in 64% odds of a September rate hike.

The jobs report for August is expected to show employers added 55,000 jobs during the month. A decline in jobs could make it difficult for the Fed to raise interest rates, according to Marc Chandler, chief market strategist at Bannockburn Global Forex.