Dollar Holds Decline on Soft Jobs Data

2026-08-10 01:02 By Jam Kaimo Samonte 1 min. read

The dollar index hovered around 99.6 on Monday after sliding sharply in the previous session, pressured by weaker-than-expected US employment data that lowered expectations for a near-term Federal Reserve interest rate hike.

Nonfarm payrolls unexpectedly declined by 23,000 in July, while steep downward revisions to the prior two months further signaled a deterioration in labor market conditions.

Markets now see around a 44% probability of a 25 basis point rate hike in September, down from 67% a week earlier.

Investors are now turning their attention to key inflation data due this week for additional clues on the monetary policy outlook.

Meanwhile, markets continued to track developments in the Middle East as Iran denied holding direct talks with the US, despite Washington’s claims that a deal was imminent.

Tehran also maintained demands for an end to the US naval blockade, the lifting of sanctions and compensation for war-related damage before agreeing to any deal.



News Stream
Dollar Holds Decline on Soft Jobs Data
The dollar index hovered around 99.6 on Monday after sliding sharply in the previous session, pressured by weaker-than-expected US employment data that lowered expectations for a near-term Federal Reserve interest rate hike. Nonfarm payrolls unexpectedly declined by 23,000 in July, while steep downward revisions to the prior two months further signaled a deterioration in labor market conditions. Markets now see around a 44% probability of a 25 basis point rate hike in September, down from 67% a week earlier. Investors are now turning their attention to key inflation data due this week for additional clues on the monetary policy outlook. Meanwhile, markets continued to track developments in the Middle East as Iran denied holding direct talks with the US, despite Washington’s claims that a deal was imminent. Tehran also maintained demands for an end to the US naval blockade, the lifting of sanctions and compensation for war-related damage before agreeing to any deal.
2026-08-10
DXY Falls Toward 2-Month Low After Jobs Report
The dollar index fell 0.5% to 99.4 on Friday, near a two-month low, after weaker-than-expected US employment data reduced expectations that the Federal Reserve will need to raise interest rates in the near term. Nonfarm payrolls unexpectedly fell by 23,000 in July, while substantial downward revisions to the previous two months pointed to a weakening labor market. The unemployment rate edged down to 4.1%, although labor force participation continued to decline. The data reinforced concerns that employment conditions are deteriorating amid persistent price pressures and uncertainty linked to the Iran conflict, while also increasing the likelihood that the Fed could delay further tightening. Investors subsequently reduced bets on a September rate hike. Meanwhile, President Donald Trump said negotiations between Iran and Oman over the Strait of Hormuz were “moving along,” although no agreement has been finalized.
2026-08-07
Dollar Holds Firm Ahead of Key Jobs Report
The dollar index was little changed around 99.95 on Friday after rebounding in the previous session, as investors cautiously awaited the closely watched July jobs report for fresh signals on labor market strength and the outlook for Federal Reserve monetary policy. Fed officials have increasingly signaled they are prepared to raise interest rates soon amid mounting inflationary pressures, with markets pricing in a 25-basis-point hike in September. The Financial Times reported that Chair Kevin Warsh would be willing to raise rates next month if inflation readings in the coming weeks remain elevated. The Fed chief is also expected to maintain his stripped-back communication style despite criticism from financial markets. Meanwhile, the dollar drew additional support from a rebound in oil prices as renewed tensions in the Strait of Hormuz reignited concerns over inflation and the interest rate outlook.
2026-08-07