DXY Tumbles on Surprise Jobs Loss, Rate Hike Bets Trimmed

The United States Dollar Index (DXY) took a hit on Friday after the release of the July Nonfarm Payrolls report, which showed a surprise loss of 23K jobs. This was lower than the expected gain of 80K jobs, and caused traders to trim their bets for a Federal Reserve rate hike in September.

The DXY fell by 0.36% to 99.58, while US Treasury yields dropped 3.5 basis points to 4.637%. The odds of a rate hike in September also decreased from 58% to 30%, according to Prime Terminal data.

Thomas Barkin, the president of the Richmond Fed, noted that the labor market is more 'low-hire and low-fire', but corporate earnings are strong.