Dollar falls after US loses 23,000 jobs in July
Why it matters: traders lifted the odds of a September Fed hold to 56%, sending Treasury yields lower and gold up 2.6%.
The US dollar fell against major currencies Friday after Labor Department data showed the economy lost 23,000 jobs in July, far worse than expectations for an 80,000-job gain. The weak payrolls report dented confidence in the labor market and pushed investors to scale back expectations for a near-term Federal Reserve rate increase. The dollar dropped 0.57% against the yen to 157.56 and the euro rose 0.39% to $1.1568. Markets now see a 56% chance the Fed holds rates steady in September, up from 45% a day earlier, according to CME FedWatch. Treasury yields also declined, with the two-year yield down 4.2 basis points to 4.245%, while spot gold climbed to $4,347.29 an ounce.