Updates to New York morning time
September hike odds fell to 48% after weak payrolls and downward revisions.
CFTC data showed yen net shorts posted biggest weekly drop since March 2014.
July CPI could reset Fed bets; PPI and retail sales due later this week.
By Karen Brettell
NEW YORK, Aug 10 (Reuters) - The U.S. dollar gained as oil prices increased ahead of Wednesday's closely watched consumer price inflation report for July, after a much weaker-than-expected jobs report on Friday cast doubt on the likelihood of a near-term Federal Reserve rate hike.
Fed funds futures traders are now pricing in 48% odds of a hike at the Fed's September meeting, down from 55% before Friday's jobs data. Analysts say slowing job growth and easing oil prices have both contributed to the lower odds of a near-term hike.
“September was starting to look highly likely and then not only did we get a bad jobs report, but terrible revisions as well,” said Adam Button, chief currency analyst at investingLive.
Wednesday's consumer price index data could spark another shift in expectations if it points to a reacceleration in price pressures. Producer price data on Thursday and retail sales figures on Friday will offer further clues on the path of inflation.
Oil prices have eased from recent highs on hopes that a deal to end the Iran conflict could be reached, though volatility persists as developments in the region continue to shift. Prices jumped nearly 2% on Monday after Iran insisted that the U.S. must meet several demands before the Strait of Hormuz can reopen.
The dollar index =USD, which measures the greenback against a basket of currencies including the yen and the euro, rose 0.15% to 99.76, with the euro EUR= down 0.1% at $1.1546.
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