U.S. non-farm payrolls rose just 73k in July, well short of the expected 102k. Unusually large revisions made the picture worse—June’s job growth was slashed from 147k to a mere 14k. Unemployment rate edged up from 4.1% to 4.2% as expected, while average hourly earnings rose 0.3% month-over-month, keeping the annual pace at 3.9%.
While not a disaster, the report showed a clear loss of momentum in hiring, pushing a September rate cut by the Fed back into focus. The sharp downward revision to June data adds weight to concerns that labor market strength is fading more quickly than anticipated.
EUR/USD bounces notably after the release as Dollar is sold off broadly. Immediate focus is now on 1.1555 support turned resistance. Sustained break there will argue that corrective pattern from 1.1829 has completed with three waves down to 1.1390. Further rally would then be seen back to 1.1788/1829 resistance zone.
