US Dollar takes a breather after last week's rally.
August jobs report on Friday is anticipated to show a significant increase in Nonfarm Payrolls.
Market expectations for 100 bps of easing from the Fed by year-end remain unchanged.
On Monday, the US Dollar Index (DXY), which measures the US Dollar’s value against a basket of six major currencies, consolidated above 101.50, extending after last week's gain of more than 1%. Markets await key labor data this week, and the August jobs report, due for release on Friday, is anticipated to show a robust increase in Nonfarm Payrolls (NFP), which might provide support to the US Dollar.
Despite ongoing economic growth that exceeds expectations, the market's anticipation of aggressive monetary easing appears to have become excessive. However, a cut by the Federal Reserve (Fed) in September is a done deal, but its size will depend on the incoming data.
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