Dollar Rebound Stalls After Strong US Job Market Data
The US dollar's decline was temporarily halted by robust job market data released on Friday. According to the Bureau of Labor Statistics, non-farm payrolls in the US added 162 thousand jobs in August, exceeding expectations of 56 thousand. This figure is significantly higher than the upwardly revised level of 21 thousand additions in July.
The strong employment numbers boosted rate hike expectations from the Federal Reserve ahead of its meeting on September 16. This led to a reduction in dovish comments made by Fed Governor Christopher Waller, which had previously caused markets to lower their bets on a rate hike.
Despite this, the dollar's decline continued, with the Dollar Index dropping 0.52 percent from the previous week. The EUR/USD pair rallied 0.25 percent during the same period, reaching its highest point of 1.1643 on Thursday.