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US Dollar Falls As June Nonfarm Payroll Hiring Misses Forecast

US Dollar Falls As June Nonfarm Payroll Hiring Misses Forecast

Tzu-Wen Chen, Technical Strategist

THE TAKEAWAY: [U.S. NFP hiring in June rises for third month but misses expectations] > [Slower job market recovery than anticipated] > [USDJPY weakens]

Hiring in the U.S. picked up slightly in June, as nonfarm payrolls (NFP) rose for the third straight month. The U.S. Bureau of Labor Statistics (BLS) reported today that employers added 80,000 workers to their payrolls in June, which missed the consensus forecast of 100,000 according to a Bloomberg News survey of 84 economists. May’s NFP figure was upwardly revised to 77,000 from 69,000 originally estimated. Private payrolls rose 84,000 in June, down from 105,000 in May, while manufacturing added 11,000 in June compared to 9000 the previous month. The jobless rate remained unchanged in June at 8.2 percent for the second month, after dipping slightly to 8.1 percent in April.

USDJPY 1-minute Chart: July 6, 2012

US_Dollar_Falls_As_June_Nonfarm_Payroll_Hiring_Misses_Forecast_body_Picture_1.png, US Dollar Falls As June Nonfarm Payroll Hiring Misses Forecast

Chart created using Market Scope – Prepared by Tzu-Wen Chen

In the minutes after data release, the greenback weakened against the Japanese yen, as investors jumped into the alternative safe haven currency. Despite missing expectations, the latest jobs figure still indicates some improvement in the labor market, and is unlikely to stoke further talks of further monetary easing by the Federal Reserve. The U.S. dollar fell as much as 35 pips against the yen and at the time of this report, was trading lower against at 79.56 yen.

--- Written by Tzu-Wen Chen, DailyFX Research

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.