US NFP data falls shy of forecasts

The greenback slid sharply after the October non-farm payrolls report showed employment rising by 150k, underperforming estimates of 180k. Last month’s print was also revised down from 336k to 297k.

Unemployment edged up to 3.9% from 3.8% as participation rates dipped to 62.7%. Meanwhile, wage inflation slowed slightly as average hourly earnings rose 4.1% year-on-year versus forecasts of a hold at 4.3%.

The dollar index slumped over half a percent in immediate fallout to 105.55. The NFP miss suggests labor market cooling and raises prospect of more dovish moves by the Fed.

Downbeat data clipped the dollar’s wings today. Markets now eye upcoming speeches from Fed policymakers to gauge the rates outlook. Any signs they may pause hikes could fuel further USD weakness into next week.