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Dollar gains lack traction as markets await CPI and NFP before September FOMC
MUFG says weaker US jobs data have not meaningfully moved the dollar or rates, with attention shifting to upcoming CPI and another nonfarm payrolls release ahead of the September FOMC.
MUFG strategist Derek Halpenny said weaker US jobs data have not triggered a strong reaction in the US dollar or interest-rate moves, as markets are still looking ahead to key inflation data and labor prints before the September Federal Open Market Committee meeting, according to FXStreet.
Halpenny pointed to softer wage growth returning toward pre-Covid levels and fewer inflation pressures coming from the labor market, factors that interact with the way traders are positioning around recent hawkish FOMC communications to keep any sustained dollar repricing more difficult.
FXStreet also noted that, while the broader news flow has kept uncertainty elevated, upcoming Consumer Price Index releases and a further Nonfarm Payrolls report are the next major catalysts for near-term dollar and rates expectations heading into September.
Elsewhere in FX markets, FXStreet highlighted that EUR/USD was trading in a narrow range around 1.1550 and GBP/USD was testing four-week highs above 1.3500 amid ongoing uncertainty related to the Middle East, including questions around the Strait of Hormuz and US-Iran talks.
Latest closeEUR/USD 1.152 ▼0.3%|GBP/USD 1.345 ▼0.1%