Dollar boosted by mounting concerns of potential additional US hike

The Euro Zone is experiencing economic setbacks, with the EUR/USD pair piercing the 1.0700 level and maintaining a bearish trend. The dollar is gaining strength, with EUR/USD trading below the 1.0700 threshold for the first time since early June.

Financial markets are cautious due to solid US macroeconomic figures and fears of the Federal Reserve hiking rates in November. The Fed’s Beige Book reported a slowdown in wage increases in the near future, but multiple Fed officials confirmed the concerns, including President Susan Collins and former Fed member James Bullard.

Bullard has resigned from his Fed position to focus on the education sector. More Fed speeches are scheduled today, which could spread additional dollar demand. The Euro suffered from a downward revision of the EU Q2 Gross Domestic Product and German Industrial Production.

The US released Initial Jobless Claims for the week ended September 1, which rose by 216K, Q2 Nonfarm Productivity, and Unit Labor Costs, beating expectations.