The dollar is weaker today. The latter has skyrocketed on Friday. Responding to higher-than-expected employment numbers This will be a factor causing the US Federal Reserve (Fed) to accelerate interest rates.
As of 11:12 p.m. PST, the dollar was down 0.2% to 134.70 yen, while the euro rose 0.06% to 137.49 yen and rebounded 0.27% to $1.021. The index measures the dollar’s movements once morest the six major currencies in the money basket, minus 0.36% to 106.24.
Investors raised expectations regarding the Fed’s rate hike by 0.75% at its monetary policy meeting in September. After the United States revealed that the number of jobs increased more than expected today.
The CME Group’s FedWatch Tool shows investors weighed 68.5 percent at the Fed to raise interest rates by 0.75% to 3.00-3.25 percent at its Sept. 20-21 meeting and weighted only 31.5% at the Fed. will raise interest rates by 0.50%
If the Fed raises interest rates by 0.75% in September, it will raise interest rates by 0.75% for the third time following raising 0.75% in both June and July.
Investors are eyeing the release of the Consumer Price Index (CPI) this week, with the CPI expected to indicate that US inflation has crossed its peak. Because oil prices fell heavily in July.
The U.S. Department of Labor will release the CPI, a measure of consumer spending inflation. July on this Wednesday This will be the key economic data following the US non-farm payrolls released on Friday.
The general CPI, which includes food and energy, rose 8.7 percent year-on-year in July, according to analysts’ survey. It slowed from a 9.1 percent jump in June, the highest level in 40 years.
However, the core CPI, which excludes food and energy, is expected to jump 6.1 percent in July year-on-year. It rebounded from 5.9% in June.
