Softer US jobs data has weakened the , but we do not see this as sufficient to extend USD losses on its own. We look for near-term stabilisation in . Thin liquidity around the US holiday today and Monday increases the risk of JPY intervention, with an initial round that may already have occurred yesterday morning
USD: Poor Jobs Report Not Enough to Bring Dollar Much Lower
There aren’t many silver linings in . A still respectable 57k gain is more than offset by 74k of downward revisions to the previous two months. Hiring also remains heavily concentrated in private education and healthcare, which added 69k jobs versus a modest 49k increase in total private payrolls. The 0.1 ppt drop in to 4.2% was driven mainly by a lower participation rate, an unencouraging sign of worker disengagement.
Overall, the report makes it harder for markets to rebuild expectations of two Federal Reserve…
