01.08.2025 17:09

The US Bureau of Labor Statistics (BLS) released its July Nonfarm Payroll (NFP) report on Friday, revealing a less-than-stellar jobs growth figure. A mere 73,000 jobs were added, significantly underperforming the anticipated 110,000 increase and following a revised June figure of only 14,000 jobs added (down from the initially reported 147,000). This underwhelming performance underscores a slowdown in the US labor market.

Further details from the report painted a mixed picture of the US economy's health. The unemployment rate inched upward to 4.2%, aligning with expectations, while the labor force participation rate slightly dipped to 62.2%. However, annual wage inflation showed a modest increase, climbing to 3.9% from 3.8%, suggesting persistent inflationary pressure. The BLS also highlighted substantial revisions to the May and June employment figures, lowering the combined job growth for those months by a considerable 258,000.

Market reaction to the disappointing NFP data was swift and pronounced. The US dollar (USD) experienced significant selling pressure, with the USD index plummeting 0.65% to 99.40 at the time of reporting. This weakness was particularly evident against the Japanese Yen, highlighting the impact of the weaker-than-expected jobs report on investor sentiment.

The impact on various major currencies was notable. Compared to the USD, the Euro (EUR) strengthened by 0.72%, the British Pound (GBP) increased by 0.33%, and the Japanese Yen (JPY) rose by 0.90%. Conversely, the Canadian Dollar (CAD) appreciated by a smaller margin of 0.17%, while the Australian Dollar (AUD) and New Zealand Dollar (NZD) showed mixed responses, indicating a varied global reaction to the less-than-positive US economic news. These fluctuations in currency values reflect the market's reassessment of the US economic outlook following the release of the July NFP data.