US Dollar Steadies After Soft Jobs Data Amid Inflation Anxiety

The US dollar steadied at its near two-month low on August 10 following the release of soft jobs data. The data showed that the US economy unexpectedly shed jobs in July, while job gains for the prior two months were revised sharply lower.

This has added extra weight to Wednesday's consumer price index report as investors look for clues on the path of Fed policy. According to Francesco Pesole, FX strategist at ING, 'It (the labour market data) was a negative event for the dollar.'

The futures market scaled back the chance of a September rate hike to around 48 per cent from 67 per cent a week ago.