USD Edges Higher Ahead of NFP Data Release

The US Dollar Index is trading near 99.00 ahead of the August Nonfarm Payrolls data release.

At press time, the DXY trades at 99.07, with investors closely watching the NFP numbers to gauge the Federal Reserve's monetary policy outlook.

The report is expected to show a gain of 56K new jobs and an unemployment rate of 4.1%, but lower-than-expected wage growth could temper expectations for future interest rates.

According to TD Securities, a strong NFP release may increase fears of a more aggressive Fed path, while a modestly softer payroll print would allow the market to price in a lower chance of a September rate hike.