Dollar Slips on Hawkish Fed Comments and Anticipation of Jobs Data

The US dollar slipped in value on Monday as traders turned their attention to this week's jobs data, following hawkish comments from Federal Reserve Chairman Kevin Warsh.

Last week, Warsh hinted at a possible interest-rate hike in September, citing the need for further tightening to curb inflation. This has increased the likelihood of a rate hike to 64%, up from around 35% before his remarks.

The July jobs release showed an unexpected drop in hiring, reducing expectations that the Fed would raise rates. Friday's report on August hiring is expected to show that employers added 55,000 jobs during the month, according to economists polled by Reuters.

Marc Chandler, chief market strategist at Bannockburn Global Forex, warned that if the jobs data shows an outright decline in employment, it would be difficult for the Fed to raise interest rates. 'I don't see how the Fed can raise interest rates after the economy had back-to-back job losses,' he said.