Dollar weakens after US reports decline in nonfarm payrolls for July
MacroDigital Finance
The dollar weakened after the United States reported a drop of 23,000 nonfarm payrolls in July, contrary to analysts' expectations of an increase of 88,000. This led investors to scale back expectations for a Federal Reserve rate hike. The CME Group FedWatch Tool indicated that investors now see a 59.9% probability that the Fed will keep interest rates at 3.50% to 3.75% at its September 16 meeting, up from just 33.0% a week earlier. The dollar index fell 0.29% to 99.645, while the dollar slipped 0.24% to 1.155 against the euro and dropped 0.36% to 157.85 yen. Additionally, investors sold the dollar as a safe-haven currency amid expectations that the conflict between the United States and Iran will end soon, after President Donald Trump said he believes the war will be over shortly.
