Dollar Pricing Faces Uncertainty Ahead of Key Economic Releases

The US dollar's price movement has been affected by recent economic data, according to MUFG's Derek Halpenny. Despite weaker-than-expected jobs numbers, the dollar and interest rates have not seen a significant reaction.

This is because markets are waiting for key releases, including Consumer Price Index (CPI) reports and another Nonfarm Payrolls (NFP), before the September Federal Open Market Committee (FOMC).

The most recent NFP print was negative, but it's likely to influence FX sentiment until at least the CPI release on Wednesday.

Halpenny notes that softer wage growth has returned to pre-Covid levels, and reduced inflation pressures from the labor market are also factors affecting dollar pricing.