July US payrolls fell by 23K, missing forecasts of 80K jobs, prompting traders to slash Fed rate hike odds for September.
EUR/USD climbed 0.43% to 1.1570 as the US Dollar slumped following a surprise drop in July Nonfarm Payrolls. The Bureau of Labor Statistics reported a 23K decline, far below the expected 80K gain, with prior months revised down by a combined 103K jobs.
June payrolls were cut to 20K from 57K, and May’s figure fell to 63K from 129K. The Unemployment Rate dipped to 4.1%, while wage growth slowed to 3.2% year-over-year, reinforcing signs of labor market cooling.
Markets now see only a 44% chance of a September Fed rate hike, down from 67% a week ago, as traders reassess policy tightening expectations.