June US Nonfarm Payrolls rose by 57K, missing estimates of 110K and weighing on Fed rate hike bets.
The Euro rose 0.16% to near 1.1455 against the US Dollar in European trading, driven by a weaker Greenback after softer-than-expected US jobs data. The US Dollar Index fell 0.15% to 100.70 as traders scaled back expectations for a Federal Reserve rate hike in September.
US Nonfarm Payrolls increased by just 57K in June, well below the forecast of 110K and a downward revision of May’s figure to 129K from 172K. The CME FedWatch tool now shows a 53.2% chance of a September rate hike, down from 64% earlier in the week.
Markets will next focus on Monday’s US ISM Services PMI data, while ECB officials signal caution on inflation’s second-round effects, potentially influencing Eurozone rate expectations.