The US Dollar is holding ground as markets prepare for this week’s key events

Here’s what you need to know on Monday, September 9:

The US dollar (USD) remains resilient to its main rivals at the start of the week as investors refrain from taking large positions ahead of this week’s key events, which will include US inflation data and the European Central Bank’s (ECB) monetary policy announcement. Sentix investor confidence for the Eurozone and July’s US consumer credit change will feature in Monday’s economic calendar.

After coming under bearish pressure on Friday from the immediate reaction to the US August employment data, the USD index benefited from risk aversion ahead of the weekend ending the day in positive territory. Wall Street’s main indexes fell sharply, with the Nasdaq Composite losing 2.7% on the day. Early Monday, the index continued to rise toward 101.50, and U.S. stock index futures were up between 0.4 percent and 0.6 percent.

The US Bureau of Labor Statistics reported that nonfarm payrolls rose by 142,000 in August. That reading was below market expectations of 160,000. In addition, July’s increase of 114,000 was revised to 89,000. Other details of the jobs report showed that the unemployment rate fell to 4.2 percent from 43 percent, while annual wage inflation, as measured by the change in average hourly earnings, rose to 3.8 percent from 3, 6%

EUR/USD it rose to a weekly high above 1.1150 in the US session on Friday, but reversed direction to close the day in the red below 1.1100. The pair remains on the back foot in the European morning and falls towards 1.1050.

GBP/USD it is struggling to find a foothold early Monday and is trading a few pips below 1.3100 after ending the previous week virtually unchanged. The UK’s Office for National Statistics will release UK labor market data on Tuesday.

USD/JPY it posted losses for a fourth straight day on Friday and hit a one-month low below 142.00. The pair is making a comeback to start the week and is trading above 143.00. Japan’s ruling Liberal Democratic Party (LDP) official and front-runner in the party’s leadership race, Sanae Takaichi, said on Monday that Japan’s inflation, excluding external factors, is still weak.

Gold it headed south in the late US session on Friday and ended the week slightly below $2,500. XAU/USD continues to decline on Monday and was last seen trading slightly below $2,490.