Chicago FED National Financial Conditions Index

Strong August job growth has increased market concern that the Federal Reserve may need to tighten policy again in September. Softer wage growth and a low quits rate still give policymakers room to wait, leaving upcoming inflation data as the decisive catalyst for Treasury yields, the US dollar index and major currency pairs.

Strong August job growth has increased the risk of a September Federal Reserve rate hike, even as slower wage growth gives policymakers room to wait. FXCOINZ examines how Treasury yields, inflation data and key technical levels may shape the US dollar index, EUR/USD, USD/JPY and USD/CHF.