The US dollar moved into negative territory, recording losses against the yen and the euro following the release of July employment data. This decline is attributed to the reduced likelihood of further interest rate hikes by the Federal Reserve.
Job Losses and Unemployment Stats
According to official data, the US economy lost 23,000 jobs in July. This result surprised the market, as economists' forecasts had anticipated an increase of 80,000 positions. Meanwhile, the unemployment rate stood at 4.1%.
Foreign Exchange Market Reaction
The release of these figures caused the dollar to surrender the gains it had accumulated in recent days following a joint support intervention by the US and Japan. Specifically:
- The US currency fell 0.47% against the yen, dropping to 157.69 yen.
- The euro strengthened by 0.31% against the dollar, reaching 1.1559.
- The Canadian dollar rose 0.6% against the greenback (to 1.3935), hitting an eight-week high.
Contrast with the Canadian Market
In stark contrast to the US situation, the Canadian labor market showed strong momentum. Employment increased by 75,100 jobs in July, far exceeding the forecast of 16,500. Unemployment in Canada fell to 6.4%, marking a two-year low.
