DXY Holds Steady Ahead of Key August Employment Report

The US Dollar Index (DXY) has held steady near 99.00 in early European trading hours on Friday, ahead of the key August employment report.

Traders are preferring to wait on the sidelines for more clarity on interest rates, following Federal Reserve Governor Christopher Waller's comments that he would lean towards keeping rates steady if inflation data shows price pressures continuing to moderate.

The implied probabilities of a US September rate hike have been pared back to 50.2%, down from 63.2% on Wednesday, according to the CME FedWatch tool.