U.S. nonfarm payrolls rose by 115K in July, beating forecasts, but wage growth and yields suggest limited Fed policy impact.
The U.S. dollar reversed early gains after July’s nonfarm payrolls report showed a 115K increase, surpassing the 62K estimate, while unemployment held at 4.3%. Average hourly earnings rose 0.2% month-over-month and 3.6% year-over-year, signaling persistent but moderating wage pressures.
The data reinforced labor market resilience without altering expectations for Federal Reserve policy. The average workweek edged up to 34.3 hours, adding a modestly positive signal. Treasury yields dipped, with the 2-year yield down 2.6 basis points and the 10-year yield down 2.2 basis points.
Stocks advanced post-release, reflecting a risk-on shift. EURUSD rebounded from near 1.1754, trading within a narrow range as markets await further directional cues.