US Dollar Trying to Breathe Again! After NFP Data, This Is Also The Focus Of The Market

<p>&nbsp;The US dollar traded flat on Monday, partly recovering from a disappointing reaction to Friday's data showing the smallest increase in 2-1/2 years, while disappointing inflation figures in China weighed on the yuan and proxy currencies.</p><p><br /></p><p>The US dollar index, which measures the US dollar against six major currencies, traded firmly before falling back by 0.09% to a trading level of 101.855. The US dollar was down 0.87% on Friday after the U.S. NFP data. up 209,000 in June.</p><p><br /></p><p><br /></p><p>While details in the jobs report reflecting continued strong wage growth underscored the market's pricing for further rate hikes later this month, the data helped reassure the market that the end of the Federal Reserve's rate hike program is at least nearing.</p><p><br /></p><p>The US dollar gained 0.55% against the yen and was last up 0.06% at 142.31 after falling nearly 1.3% on Friday, and the euro was last down 0.01% at $1.0976 after a 0.7% jump on Friday. Sterling, on the other hand, showed a bigger move, falling almost 0.5% on Monday to $1.2780 after jumping 0.79% the previous session to a 15-month high of $1.2850.</p><p><br /></p><p>For markets focused on the outlook for central bank policy, particularly the Fed, the focus is now shifting to U.S. inflation data. to be released on Wednesday, where core CPI is expected to have risen 5% on an annual basis in June.</p>