US July payrolls to test Fed's rate hike plans

The US releases July nonfarm payrolls Friday, with forecast 80,000 jobs added. The report could revive or dampen expectations for a September Federal Reserve rate hike. Economists expect 80,000 jobs after June's weak 57,000 gain, with unemployment at 4.2% and wage growth at 3.5%. Fed rate-hike odds for September have slipped to 55%, and a strong or weak payrolls figure could shift the dollar. Oil prices' recent decline has eased inflation concerns, reducing September hike bets from about 70% in late July. Analysts say large dollar declines are unlikely unless data clearly weakens the rate-hike outlook.