Dollar Drops on Worse-Than-Expected Non-Farm Payrolls

The US dollar slumped today against most major currencies as non-farm payrolls came out worse that was predicted by analysts, fueling speculations that the Federal Reserve will refrain from trimming of monetary stimulus.
Non-farm payrolls rose 162,000 in July, trailing the forecast of 184,000. What is more, the June’s increase was revised negatively from 195,000 to 188,000. At the same time, the unemployment rate ticked down from 7.6 percent to 7.4 percent.
The Federal Reserve was trying to explain that reduction of stimulus is not imminent, but traders preferred to pay more attention to fundamental data. Most reports were good, reinforcing the case for quantitative easing reduction. Yet the employment data convinced market participants that QE tampering will not likely happen too soon.
EUR/USD jumped from 1.3204 to 1.3285 as of 15:23 GMT today. GBP/USD soared from 1.5117 to 1.5293, while USD/JPY slumped from 99.52 to 98.84 after rising to 99.93 earlier.

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