Forex
USD Stable After Labor Data Disappointment
The US Dollar (USD) has stabilized at the start of this week after experiencing significant losses against major rivals following the disappointing labor market data on Friday.
The Nonfarm Payrolls (NFP) figure declined by 23K in July, missing the expected increase of 80K by a wide margin. The immediate reaction was a bearish pressure on the USD Index, which touched its lowest level since mid-June near 99.40.
Strategists at BNY observed that the weaker US labor data has cooled Fed hike odds and weighed on the Dollar. They noted that the market now has less than a 50% chance of a September rate hike, citing the downward revisions in June's increase to 20K from 57K.