• The US Dollar extends further gains in the European session on Monday. 
• Comments from Fed’s Waller and the mixed Nonfarm Payrolls print are enough to fuel a stronger US Dollar for now. 
• The US Dollar Index pops above 101.50 and looks to be heading towards 101.90 for a test. 

The US Dollar (USD) edges higher on Monday and extends gains for a second consecutive day after US Federal Reserve (Fed) Governor Christopher Waller did not convince markets that the September interest rate cut will be a 50 basis point one. Instead, with the mixed Nonfarm Payrolls release on Friday, markets look to settle for only a 25 basis point rate cut, which means that the Greenback has been punished too much in recent weeks and needs to gain a bit to get the right valuation. 

On the economic data front, this week has three pivotal points. For the US side, the US Consumer Price Index (CPI) for August release on Wednesday will be the main driver. On the European side, the European Central Bank will deliver its interest rate decision on Thursday, ahead of the Fed’s rate decision next week. Meanwhile, the US presidential election will step to the forefront again with a debate between former US President Donald Trump and Democratic candidate Kamala Harris on Wednesday.