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U.S. job losses in July cool Fed hike odds, crypto stays quiet

The Nonfarm Payrolls report showed the economy shed 23,000 jobs, and CME FedWatch cut the September hike probability to 46% from 55% right after the release.

Reported · Written up by our desk · Market Structure

The U.S. economy lost 23,000 jobs in July, far below expectations for a gain, according to the government’s Nonfarm Payrolls Report. June’s increase was revised down to 20,000 from an originally reported 57,000, while May’s job gains were also lowered to 63,000 from 129,000. The unemployment rate dipped to 4.1%.

The weaker labor data pushed market pricing around the Federal Reserve’s next move, with the chance of a rate hike in September slipping below 50%. CME FedWatch showed traders had been pricing a 55% probability before the release, which fell to 46% immediately afterward.

CoinDesk reported that crypto markets showed little reaction to the data, with bitcoin modestly higher on the session at about $65,000. Stocks and bond markets moved higher and lower, respectively, while gold rose 3.0% for the day and silver climbed about 6.0%.

CoinDesk also noted that average hourly earnings came in below forecasts, up 0.1% in July versus 0.3% expected. The report on earnings rose 3.2% year over year versus 3.5% expected, and one economist cited a potential seasonal timing effect for the weakness, suggesting investors may focus next on the July CPI report.

Latest closeGold $4,292.00 ▲1.1%|Silver $61.56 ▼0.9%|Bitcoin $64,946.42 ▲1.1%

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