The US non-farm payrolls data for July has been released, and the growth momentum of the job market has slowed down. Specifically, the seasonally adjusted non-farm payrolls increased by 114,000 in July, the lowest increase since April 2024, indicating that job growth is slowing down. At the same time, the unemployment rate rose to 4.3%, a new high since 2021, further highlighting the weakness in the job market.

The US dollar index gapped down after the data was released, reflecting market concerns about the outlook for the US economy. The weak data also led traders to increase their expectations for future interest rate cuts by the Federal Reserve, especially at the September meeting, where there may be a larger interest rate cut, and the market is betting that the Federal Reserve may cut interest rates by 50 basis points.