FXOUTLOOK-US dollar likely to rise in the week ahead
* Dollar likely higher in the week ahead on rate outlook
* U.S. jobs data does not change U.S. rate outlook
* Data scheduled for release includes Aug PPI
By Nick Olivari
NEW YORK, Sept 5 (Reuters) - The U.S. dollar is expected to gain in the week ahead as investors remain focused on the outlook for steady U.S. interest rates while other regions are expected to begin cutting rates.
The expectation for stable U.S. rates among currency investors remains in place despite the U.S. unemployment rate jumping to 6.1 percent in August, its highest in more than 4-1/2 years. U.S. short term interest rate futures after the pointed to the Federal Reserve holding the fed funds rate steady at 2.0 percent at this month's policy setting meeting, even after the U.S. monthly jobs data was reported on Friday.
Investors will now closely scrutinize inflation, consumer sentiment, and retail sales data set for release in the coming week, for more clues on the health of the U.S. economy and the potential for higher interest rates.
"There have been several interest rate cuts in Asian markets and Australia along with pressure on the ECB and BOE to cut rates, while pressure is mounting for a rate hike in the U.S., both work in favor of the dollar," said Andrew Bekoff, chief investment strategist at Meyers Associates in New York.
Some Fed officials are concerned about inflation, which has been pushed above 5.0 percent by soaring energy and food prices during a time of historically low Fed rates. Continued...















