USD Weakens After June NFP Miss at 57K; US Markets Closed for July 4th

The US dollar extended its decline following a sharply disappointing June non-farm payrolls report, with the economy adding just 57K jobs versus the 110K consensus expectation. The significant miss of 53K below forecast triggered broad-based dollar selling across major pairs, reinforcing concerns about a cooling US labor market. US equity markets closed in mixed fashion ahead of the Independence Day holiday, with a notable rotation into value stocks suggesting defensive positioning among investors. With US markets shut on July 3rd in the lead-up to July 4th celebrations, liquidity conditions are expected to remain thin, potentially amplifying any moves in forex markets driven by non-US data or risk events. The weak employment print may increase expectations for Federal Reserve rate cuts, adding further downside pressure on the greenback. Traders should monitor how EUR/USD, GBP/USD, and other dollar pairs consolidate during the holiday-thinned session, as the NFP miss could set the tone for continued dollar weakness heading into the following week.