US Dollar at Risk as Nonfarm Payrolls Report Weighs on Rate Hike Odds

The US dollar is awaiting the nonfarm payrolls report, which could determine whether markets price a greater or lesser than 50% chance of a Fed rate hike in September.

Fed funds futures have recently pared expectations for two rate hikes by December, with the probability of a September hike sitting at 54.6% at Thursday's close.

If the NFP report undershoots expectations, it could further reduce those odds and weigh on the US dollar, which is already hovering near several important support levels.

The jobs report for July showed that the economy lost 23,000 jobs, with most of the growth concentrated in healthcare and social assistance.