image credit: Adobe Stock

August Jobs Report: Nonfarm Payrolls at 315,000; USD in Focus After Breakout

September 2, 2022

Via: DailyFX

The U.S. dollar, as measured by the DXY index, maintained a slightly bearish bias after the NFP report crossed the wires despite the U.S. Treasury yields’ attempt to perk up. However, the greenback could resume its ascent soon as the employment data is not likely to alter the Fed’s tightening plans in the near-term. While wages may be growing at a slower pace, the extremely tight labor market will prevent the type of demand destruction needed to bring inflation back to the 2% target rapidly. Having said that, the FOMC may deliver another 75 basis points interest rate increase at its September gathering, in line with current market pricing. In addition, more monetary policy tightening should be expected at subsequent meetings later in the year.

Read More on DailyFX