Dollar index clings to 102 mark after moderation in Nonfarm payrolls

Published on Aug 07, 2023 12:12

The US dollar index turned lower from a three and half week high amid tepid labour market data though it manages to hover around 102 mark. The US economy created 187K jobs in July of 2023, below market expectations of 200K and following a downwardly revised 185K in June, according to the data from the US Labor Department on Friday. The reading is well below the average monthly gain of 312K over the prior 12 months. However, the Labor Department said the unemployment rate edged down to 3.5 percent in July from 3.6 percent in June. The household survey measure of employment surged by 268,000 persons, while the labor force grew by 152,000 persons. Markets are likely to focus on the fact that despite the moderation in the job growth, the US average hourly earnings rose 0.4% for the month and marked a steady 4.4% annual uptick. This clubbed with the fact that the labor force participation rate held at 62.6% is likely to cap a major downswing in the US dollar as the traders shift their attention to the coming inflation numbers from the world`s largest economy.