The U.S. dollar declined across the board after the June jobs report showed softer employment growth, prompting markets to scale back bets on a Federal Reserve interest rate increase this month. The U.S. economy added just 57,000 nonfarm jobs in June, well below forecasts of 110,000, while the dollar index was last up 0.05% at $100.91 and remains up about 2.74% for the year to date. Over the past week, the index fell 0.36% as the weak jobs report reinforced expectations of a more dovish Federal Reserve, and improving risk sentiment amid progress in indirect U.S.-Iran talks further reduced demand for the safe-haven currency. Lower oil prices also eased inflation concerns, with improving energy flows through the Strait of Hormuz and prospects of higher OPEC+ output raising expectations of ample supply. Among major currencies, the British pound was last up 0.19%, supported by an upward revision in UK factory PMI data, while the Japanese yen was last down 0.44% as its reversal bore the hallmarks of official intervention after dropping to a four-decade low against the dollar in the last week.
Weak US jobs data reduces Fed rate hike expectations, weakening USD and boosting GBP.
Weak US jobs data reduces Fed rate hike expectations, weakening USD; yen also weakened by intervention suspicion.