The US economy unexpectedly lost 23,000 jobs in July, a significant deviation from expectations, according to CoinDesk. This softer employment data has prompted a decline in the US Dollar against major currencies, with USD/JPY falling 0.65% to around 157.40, FX Street reported on Friday.
Following the weaker jobs report, the British Pound rose to near three-week highs against the dollar at 1.3506, while the Euro gained 0.43% to trade around 1.1570, FX Street noted. This market reaction reflects revised expectations that the Federal Reserve may slow or reduce the pace of interest rate hikes in September.
Commerzbank’s Thu Lan Nguyen highlighted that the US Dollar’s previous support from the Fed’s hawkish stance is likely to fade as investors reassess rate outlooks. For Japanese investors, the movement in USD/JPY is especially relevant, given the pair’s influence on cross-border investment flows and monetary policy considerations in Japan.