DXY Fails to Hold a Stellar Jobs Report Pop
The dollar popped this morning off a stellar jobs number, 162k versus 56k expected. Oddly enough, it was not enough for the dollar to follow through.
Why? My speculation is the market is now eyeing inflation more than ever. Reflect back a couple weeks: Warsh was very hawkish at Jackson Hole, saying inflation was running too hot. Then yesterday Waller, another hawk, said he would hold rates if inflation keeps cooling. So the hawks are turning neutral to dovish, and the market is holding onto the idea that inflation is truly trending lower.
Notice oil is elevated in the 90s but lower today, and yields popped then faded. So the great jobs print jumped September hike odds toward 59%, but it may not stay.
From a price action prespective: DXY tapped previous support turned resistance and is back below the 200-day.
read the full article here.
— Alan
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3September 4, 2026 1.5K 3
