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Dollar eases after weaker US employment data dents September hike odds

FXStreet notes the DXY is pressured to defend the 200-day moving average at 99.18 as traders reprice the Fed outlook for September.

Reported · Written up by our desk · Major Pairs

Societe Generale’s Kenneth Broux said softer US labor data, along with downward revisions, has sharply cut expectations for a September Fed hike, while one move is still seen as priced for December, driving renewed losses for the US dollar.

FXStreet reports that the dollar has extended its decline as markets re-evaluate the Fed’s dual mandate and the implications for both bonds and FX, with the DXY described as needing to defend its 200-day moving average near 99.18 to prevent a deeper drop.

In parallel, FXStreet said GBP/USD traded cautiously around the 1.3400 area, with Hormuz-related risks cited as boosting USD demand, while EUR/USD started the week below 1.1600 and near levels that sit within reach of a recent post-jobs-data high.

FXStreet also flagged broader risk and cross-asset moves around the same macro catalyst, including gold climbing back toward the upper end of its daily range after the US Nonfarm Payrolls release.

Latest closeGold $4,292.00 ▲1.1%|EUR/USD 1.152 ▼0.3%|GBP/USD 1.345 ▼0.1%

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