Weak US Jobs Data Sends Greenback Tumbling

The US economy lost 23K jobs in July, falling short of market expectations for an increase of 80K. This weak payroll figure weighed heavily on the Greenback and US Treasury yields.

Despite this, the Unemployment Rate unexpectedly fell to 4.1% from 4.2%. The US Dollar Index (DXY), which tracks the Dollar against six major currencies, traded around 99.50, down nearly 0.45% on the day.

The benchmark 10-year US Treasury yield fell to around 4.60%, about eight basis points below its intraday high of 4.68%. The softer labour-market data comes as energy-driven inflation risks ease following the recent decline in Oil prices, with West Texas Intermediate (WTI) trading around $76 per barrel, down nearly 10% this week.

The CME FedWatch Tool now assigns a 42.1% probability to a rate hike at the September meeting, down from 67% a week ago.