The U.S. dollar edged slightly higher on Friday, pausing its recent slide as investors digested a combination of softer labor data and a modest uptick in inflation, while rate cut bets from the Federal Reserve remained firmly in place.<\/p>\n\n\n\n
The dollar index rose 0.1% to 97.66<\/strong>, trimming part of Thursday\u2019s losses but still heading for a 0.1% weekly decline<\/strong>\u2014its second in a row. The move came as Treasury yields recovered from earlier weakness, with the 10-year note rising 4 bps to 4.04%<\/strong>, after briefly slipping below 4% for the first time since April.<\/p>\n\n\n\n Weekly jobless claims surged to their highest level in nearly four years<\/strong>, highlighting renewed weakness in the labor market. That overshadowed consumer price index data showing August inflation rising 0.4% month-on-month and 2.9% year-on-year<\/strong>, the sharpest increase in seven months but still broadly aligned with forecasts.<\/p>\n\n\n\n Investors now overwhelmingly expect the Fed to cut interest rates by 25 basis points<\/strong> at its September 17 meeting. Odds of a larger 50 bps move<\/strong> have eased, with traders anticipating a more gradual easing cycle heading into 2026, according to CME FedWatch data.<\/p>\n\n\n\n The euro slipped 0.1% to $1.1725<\/strong>, consolidating after Thursday\u2019s gain. The European Central Bank<\/strong> kept its key rate at 2% for a second meeting, with policymakers signaling comfort in holding steady as inflation trends remain aligned with target.<\/p>\n\n\n\n The British pound weakened 0.2% to $1.3553<\/strong>, weighed down by data showing that U.K. GDP flatlined in July, signaling a summer slowdown.<\/p>\n\n\n\n Against the Japanese yen<\/strong>, the dollar gained 0.4% to 147.76 after the U.S. and Japan reaffirmed their commitment to market-driven exchange rates and the need to avoid \u201cexcess volatility.\u201d<\/p>\n\n\n\n The offshore yuan weakened 0.1% to 7.1234 per dollar<\/strong>, while the Australian dollar slipped marginally to $0.6645<\/strong>, though it remained close to a 10-month high amid steady commodity demand.<\/p>\n\n\n\n With labor market data weakening and inflation holding modestly above the Fed\u2019s 2% target, investor focus is firmly on next week\u2019s Federal Reserve policy meeting<\/strong>. A quarter-point cut is seen as a near-certainty, while the debate now turns to whether the Fed will adopt a more aggressive easing path into year-end.<\/p>\n","protected":false},"excerpt":{"rendered":" The U.S. dollar edged slightly higher on Friday, pausing its recent slide as investors digested a combination of softer labor data and a modest uptick in inflation, while rate cut bets from the Federal Reserve remained firmly in place. Dollar Index and Treasury Yields The dollar index rose 0.1% to 97.66, trimming part of Thursday\u2019s …<\/p>\n","protected":false},"author":9,"featured_media":112137,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,6827,49,37,36],"tags":[],"class_list":["post-118761","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-daily-economic-reports","category-economic-reports","category-forex-markets","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118761","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118761"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118761\/revisions"}],"predecessor-version":[{"id":118762,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118761\/revisions\/118762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/112137"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118761"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118761"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118761"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Labor Market and Inflation in Focus<\/h2>\n\n\n\n
Euro, Sterling, and Yen<\/h2>\n\n\n\n
Yuan and Australian Dollar<\/h2>\n\n\n\n
<\/h2>\n\n\n\n