US jobs data missed forecasts sharply, pushing traders to trim Federal Reserve rate hike expectations for September.
The US Dollar Index fell near 100.70, down 0.66% for the week, after June Nonfarm Payrolls rose by 57K, well below the 110K estimate. May’s figure was also revised lower to 129K from 172K, signaling softer labor market conditions.
The CME FedWatch tool now shows a 53.2% chance of at least one 25 basis point hike by September, down from 64% earlier. The dollar weakened against major peers, with the British Pound leading gains.
Analysts suggest the data alone may not trigger a sustained dollar decline, as markets await further cues on Fed policy.