US dollar is on the upswing at the start of the week

The greenback continued its upward trend against most major currencies since the beginning of this week, propelled by jobs data indicating a strengthening US labor market.

The US economy added 142,000 jobs last month, which was below consensus, but still a surge in job growth compared to July’s revised reading of 89,000 jobs.

Wage growth also surged on both of monthly and annual levels, which has negative implications regarding future inflation readings.

Average hourly earnings rise 0.4% and 3.8% versus 0.2% and 3,6% on monthly and annual basis respectively, which was above expectations referred to 0.3% and 3.6% respectively.

Unemployment rate ticked lower to 4.2% from 4.3%, according to the Bureau of Labor Statistics.

Dollar index, which measures the performance of the US dollar against a basket of six major currencies, rose to 101.55 points, compared to the previous day's close of 101.18. The index reached a high of 101.70 during today's trading, compared to a low of 101.14. This data has fuelled speculation that the Federal Reserve may pause its rate cuts in the September meeting or, at least, reduce rates by only 25 basis points, given the improvement in labor market conditions.

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