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US nonfarm payrolls fall, Dollar weakens after July jobs report

July payrolls fell by 23K versus 80K expected, while the unemployment rate edged down to 4.1% and wage growth eased to 3.2%.

Reported · Written up by our desk · Major Pairs

The US Bureau of Labor Statistics reported that nonfarm payrolls declined by 23K in July, a sharp miss versus expectations for an 80K increase, after June’s print was revised to a gain of 20K from 57K. The BLS also revised May and June combined employment down by 103K versus prior reporting, according to the agency’s release.

The report showed the unemployment rate edging lower to 4.1% from 4.2% in June, while the labor force participation rate fell to 61.4% from 61.5%. Annual wage inflation, measured by average hourly earnings, eased to 3.2% from 3.4%.

Following the data, FXStreet said the US dollar faced heavy bearish pressure, with the US Dollar Index down 0.35% on the day to 99.60 at the time of publication.

The CME FedWatch Tool cited by FXStreet showed the probability of a 25 basis points Federal Reserve rate hike dropping to 46% from about 55% before the release, reflecting traders scaling back odds in light of the employment report details.

Latest closeDollar index 99.98 ▲0.3%

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