US dollar sinks on shock contraction in jobs
USD/JPY — All Desk Targets
| Firm | Stance | YE 2026 |
|---|---|---|
Scotiabank | Bullish | 140.00 |
Bank of America | Bullish | 149.00 |
UOB | Neutral | 163.50 |
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The US non-farm payrolls report pointed to an economy significantly worse than believed. The data showed the economy shedding 23K jobs in July, far worse than +80K expected and below any estimates in the survey of economists. Worse yet, the prior two reports were revised lower by
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4 itemsUS Dollar Slumps As Non-Farm Employment Rates Below Forecast - Exchange Rates Org UK
Top of the Morning: CIO Strategy Snapshot - Where to from here?
The desk maintains a cautious outlook on US economic data following a surprising July payroll report, which recorded a significant miss with job growth at just 73,000 and notable downward revisions to prior months. Per the full note [source], the average monthly job creation has decreased dramatically to 35,000 over the last three months, raising concerns about potential economic slowdown and its ramifications for future Federal Reserve policy. Market participants should remain alert to the implications of these figures as they navigate the upcoming trading days, especially given the correlations between economic indicators and FX volatility.