Dollar Slips on Surprise Job Losses

The US Dollar (USD) took a hit on Friday after a surprise decline in nonfarm payrolls, causing the USD/CHF pair to edge lower. The US economy lost 23K jobs in July, falling short of economists' expectations of an increase of 80K.

This unexpected news sent the US Dollar Index (DXY) down nearly 0.33% on the day, trading around 99.60. Richmond Fed President Thomas Barkin commented on the report, saying that the jobs data were 'more low hire, low fire' and 'very consistent with a sector in weak balance.'

The Federal Reserve's probability of a rate hike at the September meeting fell to around 42% from 54% immediately before the release. Analysts now look to next week's US Consumer Price Index (CPI) report for further clarity.