Dollar Gains on Oil Price Surge Ahead of US CPI Report

The U.S. dollar gained on Monday as oil prices increased ahead of Wednesday's consumer price inflation report for July, which could spark another shift in expectations if it points to a reacceleration in price pressures.

Analysts say slowing job growth and easing oil prices have both contributed to the lower odds of a near-term Federal Reserve rate hike. Fed funds futures traders are now pricing in 52% odds of a hike at the Fed's September meeting, down from 67% a week ago.

Adam Button, chief currency analyst at investingLive, said 'September was starting to look highly likely and then not only did we get a bad jobs report, but terrible revisions as well.'