DXY Surges on Strong Jobs Data, Hike Odds Rise to 63%

The US Dollar Index (DXY) rose by 0.17% after a strong Nonfarm Payrolls report, which showed the economy created nearly three times as many jobs as expected in August.

The DXY traded at 99.17, bouncing off a daily low of 98.91, following the release of the data from the Bureau of Labour Statistics (BLS).

The labor market's strength increased the chances of a Fed rate hike at the September 16 meeting, with the swaps market showing a 63% probability of a 25-bps increase in the Fed funds rate, up from 54% a day ago.