Dollar rises after August jobs add 162,000 but softens ahead of inflation data
US job growth exceeded expectations on Friday while traders anticipate the outcome of next week's CPI report.
The dollar strengthened on Friday following US employment data that showed employers added 162,000 jobs in August. This figure significantly surpassed the 56,000 additions anticipated by economists. The August results followed an unexpected 23,000 job decline recorded in July. The unemployment rate remained steady at 4.1 per cent. Noel Dixon, senior macro strategist at State Street, noted that the current number likely does not alter market views significantly. He stated that reactions will depend on core inflation data released next week. Data regarding August is considered critical for determining whether the Federal Reserve will increase interest rates during its meeting scheduled for September 15-16. Fed Governor Christopher Waller indicated he would support maintaining steady rates if upcoming information confirms cooling inflation pressure. Producer price inflation figures are due on Thursday, while consumer price inflation data is expected Friday. Economists forecast core CPI to ease to 2.4 per cent on a year basis from the 2.5 per cent recorded in July.
