US Dollar Index (DXY)

Analyst Robert Howard said August US CPI data, due ahead of next week's Fed decision, could sway the Fed toward a hike or holding steady and affect the dollar; Reuters poll medians expect headline CPI +0.4% m/m, +3.4% y/y, and core CPI +0.2% m/m, +2.4% y/y, with markets pricing a 57% chance of a September hike.

UBS chief US economist Jonathan Pingle now expects the Fed to hike rates 25bp in September and again in December, reversing his prior no-change forecast, citing Chair Warsh's Jackson Hole speech and a stronger-than-expected 162k August payrolls report.

UBS Global Wealth Management now expects the Fed to hike rates 25bp each in September and December 2026, reversing its prior forecast of no policy change.

US nonfarm payrolls rose by 162,000 in August, exceeding estimates, which may influence upcoming Federal Reserve policy decisions.

US employers added 162,000 jobs in August, shifting market focus back to inflation.