US dollar pressured post NFP data

The US dollar experienced renewed selling pressure after the July jobs report, which showed a 187,000 increase in nonfarm payrolls. The US Bureau of Labour Statistics reported that Nonfarm Payrolls in the US rose 187,000 in July, weaker than the market expectation of 200,000. The US Dollar Index recorded 101.807 at the time of writing, down -0.59%.

The unemployment rate edged lower to 3.5% from 3.6%, and annual wage inflation held steady at 4.4%, higher than the market forecast of 4.2%. The unemployment rate declined to 6.7%, while the Labour Force Participation rate remained unchanged at 62.6%.

The US service sector continued to expand in July, with the ISM Services PMI declining to 52.7 from 53.9, and the Prices Paid Index climbed to 56.8 from 54.1. The US private sector employment rose by 324,000 in July, providing further support to the USD. Global rating agency Fitch downgraded the US government’s credit rating to AA+ from AAA, citing anticipated fiscal deterioration over the next three years and a high and growing general government debt burden.

The number of job openings on the last business day of June stood at 9.58 million, and the US ISM Manufacturing PMI improved modestly to 46.4 in July from 46 in June. Inflation in the US fell to 3% on a yearly basis in June from 3.8% in May, and the Core PCE Price Index, the Federal Reserve’s preferred gauge of inflation, arrived at 4.1% on a yearly basis, down from 4.6% in May and below the market forecast of 4.2%.