USD Plunges as US July NFP Misses Badly at -23K vs +80K Expected

The US dollar faced intense selling pressure following a sharply disappointing July Non-Farm Payrolls report, which showed a loss of 23,000 jobs versus the +80K consensus expectation. The data marks a significant deterioration from the prior month's +57K reading, compounded by a staggering -103K two-month net revision that slashed May's figure to +129K. Private payrolls added just 30K against the 78K forecast, underscoring broad labor market weakness. Average hourly earnings rose only 0.1% month-over-month versus the 0.3% expected, with the year-over-year rate cooling to 3.2% against 3.5% anticipated, easing wage inflation concerns. The unemployment rate unexpectedly improved to 4.1% from 4.2%, though participation slipped to 61.4%. The weak employment and earnings data significantly bolster expectations for Federal Reserve rate cuts, with markets likely repricing the September meeting as a near-certainty for easing. Traders should watch EUR/USD, GBP/USD, and USD/JPY for momentum continuation as dollar weakness may extend if risk sentiment deteriorates further amid recession fears.