Strong US Jobs Data Boosts Rate Hike Expectations as Markets Eye Fed Decision

The US dollar index rose 0.15% to 99.15 overnight, following a strong August non-farm payrolls report that exceeded expectations.

According to data released by the US Bureau of Labor Statistics on Friday, US non-farm payrolls increased by 162,000 in August, mainly driven by a rebound in leisure and hospitality employment and an increase in government sector employment. The unemployment rate held at 4.1%.

The report suggests that the US labor market is withstanding uncertainty brought by the Iran war and inflationary pressures.