U.S. dollar nears two-month low amid weak jobs report and inflation anticipation

U.S. dollar Federal Reserve inflation data employment report oil prices

The U.S. dollar has moved toward a two-month low as investors await upcoming Consumer Price Index (CPI) data to assess the Federal Reserve's future interest rate decisions. The currency's weakness follows a July employment report showing the U.S. economy unexpectedly shed 23,000 jobs, while the unemployment rate rose to 4.1%.

Market expectations for a Federal Reserve rate hike in September have declined significantly, with futures pricing the probability at approximately 44%, down from 67% a week prior. Consequently, U.S. Treasury yields have also fallen, with the 10-year note at 4.637%.

In other markets, Brent oil futures rose 1.4% to roughly $85 per barrel due to uncertainty regarding the Strait of Hormuz. This comes as Iran reports being in the final stages of a deal with Oman regarding new shipping lanes, though it noted that certain U.S. conditions must still be met.

Entities: Brent crude · Federal Reserve · Iran · Nasdaq · Oman · S&P 500 · U.S. dollar

Claims

What the coverage asserts, and how well corroborated each claim is across sources.

[● 11 SOURCES] The U.S. economy unexpectedly shed jobs in July. (The U.S. economy unexpectedly shed jobs in July.)
[● 10 SOURCES] Brent oil futures rose 1.4% to approximately $85 per barrel. (Brent oil futures rose 1.4% to approximately $85 per barrel.)
[○ 1 SOURCE] The Nasdaq technology index has risen 14.8% this year. (The Nasdaq technology index has risen 14.8% this year.)
[● 3 SOURCES] U.S. core CPI is estimated to rise 0.2% month-on-month in July. (U.S. core CPI is estimated to rise 0.2% month-on-month in July.)
[● 10 SOURCES] Iran stated a deal with Oman regarding new shipping lanes is in its final stages. (Iran stated a deal with Oman regarding new shipping lanes is in its final stages.)
[● 12 SOURCES] Investors are awaiting U.S. inflation data for clues on the Federal Reserve's interest rate path. (Investors are awaiting U.S. inflation data for clues on the Federal Reserve's interest rate path.)
[● 3 SOURCES] The U.S. dollar is hovering near a two-month low against major currencies. (The U.S. dollar is hovering near a two-month low against major currencies.)
[○ 1 SOURCE] The S&P 500 reached a new absolute high of 7,757 points. (The S&P 500 reached a new absolute high of 7,757 points.)
[○ 1 SOURCE] The U.S. economy shed 23,000 jobs in July. (The U.S. economy shed 23,000 jobs in July.)
[○ 1 SOURCE] The unemployment rate rose to 4.1% in July. (The unemployment rate rose to 4.1% in July.)
[● 11 SOURCES] The U.S. dollar index was at 99.6. (The U.S. dollar index was at 99.6.)
[● 11 SOURCES] The futures market has scaled back the chance of a September move to around 44%, from 67% a week ago. (The futures market has scaled back the chance of a September move to around 44%, from 67% a week ago.)