Home›Forex›Major Pairs›Weak US jobs data lifts rate-cut odds, sending USD low…

Weak US jobs data lifts rate-cut odds, sending USD lower

USD/JPY slid to around 157.04 after the jobs report before rebounding toward 157.99, and gold extended gains after the shift toward a less-hawkish Fed outlook.

Reported · Written up by our desk · Major Pairs

Forexlive reports that weak US July non-farm payrolls data, which came in at -23K versus expectations of +80K, eased concerns about an overheating jobs market and a sustained rise in inflation.

The dollar fell broadly after the release, with USD/JPY dropping most sharply amid remarks from Japan's finance minister that included intervention talk. Forexlive said USD/JPY fell from about 158.35 to 157.04, then rebounded to roughly 157.99 before renewed selling left it near 157.50 late in the day.

Forexlive added that the data lowered the odds of a September rate hike to below 50%, though it also noted that expectations can shift again after next week's CPI report. It said stock markets benefited from the outlook for lower yields, with equities seeing a calmer, upward week.

Beyond FX, Forexlive said gold rose again on the more dovish US shift, gaining nearly 10% on the week, and highlighted that the GDX ETF logged its second-best week ever. It also referenced market optimism around Coherent as investors weigh exposure to optical materials and semiconductors alongside uncertainty about memory spending timelines.

Latest closeGold $4,292.00 ▲1.1%|USD/JPY 158.52 ▲0.6%

More like this

Sources