US July Nonfarm Payrolls Drop by 23K, Missing +80K Forecast

The US Bureau of Labor Statistics reported that nonfarm payrolls declined by 23,000 in July, a sharp miss against market expectations of an 80,000 increase. The disappointing print follows a downwardly revised 20,000 gain in June (originally reported as 57,000).

The weak labor market data intensifies concerns about the pace of the US economic recovery and may weigh on the dollar. Traders will closely monitor upcoming Fed commentary for any shift in policy tone.

The large discrepancy between the actual figure and the consensus forecast is likely to drive volatility in currency pairs, especially those heavily exposed to US economic performance.