June Nonfarm Payrolls rose by 57K, far below the expected 110K, prompting Fed rate cut bets and USD selling.
The US Dollar (USD) fell sharply Friday after June Nonfarm Payrolls increased by just 57K, missing forecasts of 110K. The Bureau of Labor Statistics also revised April and May figures downward by a combined 74K, signaling a weaker labor market than previously reported.
The Unemployment Rate dipped to 4.2% from 4.3%, but the decline was driven by a drop in the Labor Force Participation Rate to 61.5%. The USD Index slid to a two-week low near 100.50 following the release, reflecting investor reassessment of Federal Reserve policy timing.
With US markets closed for Independence Day, trading volumes remained subdued, but the weak jobs data fueled expectations of a potential Fed rate cut later this year.