The US dollar eased slightly on Friday after reaching a near one-month high earlier in the day, as market participants digested mixed signals from the U.S. labor market. Nonfarm payrolls data revealed that 206,000 jobs were added in June—higher than expected—but figures from previous months were revised significantly lower. This added to growing speculation that the Federal Reserve may begin cutting interest rates as early as September. Meanwhile, the unemployment rate ticked up to 4.1%, the highest level since late 2021, reinforcing perceptions that the labor market is gradually cooling.
Currency markets responded cautiously to the data. The euro climbed slightly to near $1.0820 after falling earlier in the week, while the yen steadied around 160.60 to the dollar. Traders are closely watching central bank actions, with expectations now priced in for potentially two Fed rate cuts this year. The mixed employment figures have added to the uncertainty about the Fed’s next move, leaving investors to await more economic data to clarify the path ahead.
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