The dollar is stronger against the euro this morning after a strong Non-Farm Payrolls report on Friday afternoon.
The report showed that the US economy added 943,000 jobs in July, the most in eleven months and above market expectations of 870,000. This is due to the rapid pace of COVID-19 vaccinations, which has allowed the country to continue re-opening. Notable job gains occurred in leisure and hospitality.
This has boosted hopes that the Federal Reserve will begin to taper monetary policy. Officials have previously cited that the labour market needs to show an improvement before action is taken.
The markets will be watching US inflation data closely on Wednesday, which is expected to come in at 4.3% in July. Federal Reserve officials continue to view higher inflation as transitory.
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