Daily digest market movers: The US Dollar dips on July's weak jobs growth

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  • US Nonfarm Payrolls (NFP) grew by just 114K in July, falling short of the market expectation of 175K and significantly below June's downwardly revised growth of 179K (from 206K), according to the US Bureau of Labor Statistics (BLS) report on Friday.
  • Additional figures from the report showed that the Unemployment Rate inched up to 4.3% in July from 4.1% in June.
  • Concurrently, Average Hourly Earnings' annual wage inflation decreased to 3.6% from 3.8%.
  • The weak demand for labor in the US, underscored by these figures, has piled pressure on the USD, increasing expectations that the Fed will start to cut interest rates in September.
  • The CME FedWatch Tool now shows that traders predict a 90% chance of a half-point Fed rate cut in September.

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