US Dollar's weakness continues after August Nonfarm Payrolls came in lower than expected, reflecting broader labor market concerns.
Market expectations for a Federal Reserve interest rate cut have risen, driven by signs of a slowing US labor market and softer job growth.
The odds of a 50 bps cut in September by the Fed rose to nearly 50%.
The USD/JPY tallies 0.30% losses on Friday as the USD extends its broad weakness after soft Nonfarm Payrolls figures from the US.
The US Dollar's appeal has weakened following a weaker-than-expected August Nonfarm Payrolls (NFP) report, which showed 142K new jobs, below estimates of 160K but above July’s revised 89K. The Unemployment Rate fell as expected to 4.2% from 4.3%. Other data showed that Average Hourly Earnings rose by 3.8% year-on-year, exceeding expectations.
This decline in labor market conditions, alongside disappointing JOLTS Job Openings and ADP Employment data, has fueled concerns about a slowing economy along the week and markets are getting confident about a bigger cut in September by the Federal Reserve (Fed).
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