July Nonfarm Payrolls fell by 23K, missing forecasts of 80K and fueling Fed rate cut bets.
USD/JPY slid 0.65% to 157.40 as US jobs data undershot expectations, pressuring the dollar. Nonfarm Payrolls declined by 23K in July, far below the anticipated 80K gain, while prior months were revised down by a combined 103K jobs.
The Unemployment Rate dipped to 4.1%, but wage growth slowed to 3.2% annually, reinforcing signs of labor market cooling. June payrolls were revised to 20K from 57K, and May to 63K from 129K.
Markets now see a Fed rate hike in September as unlikely, with the CME FedWatch Tool showing reduced tightening odds. The yen strengthened as Japanese authorities signaled continued intervention to curb currency weakness.