The United States (US) NFP jobs data report rocked the market at the close of trade at the end of last week.
The figures published in the reading for the month of July recorded worse figures than what the market had predicted.
Job growth slowed to just 114,000 gains versus expectations of 176,000 while average hourly earnings also fell to 0.2% versus forecasts to remain at 0.3%.
While it is even more worrying when the unemployment rate, which is expected to remain at a high level of 4.1%, has even increased to 4.3%, the highest since October 2021.
The entire report for July clearly shows that the labor sector in the United States is under pressure while further strengthening the expectation that the Federal Reserve (Fed) will implement their interest rate cut in September.
Even analysts are beginning to expect more aggressive policy easing with the option of a rate cut of 50 basis points.
Therefore, investors can witness a direct impact on the movement of the US dollar currency which experienced a decline in the last trading session of the week.
The dollar index has fallen to a 20-week low of around 103.10 points while the US 10-year treasury yield is the lowest since July 2023 at around 3.73%.
The focus at the start of the week will be on US services PMI survey data to be published in the New York session after last week investors saw survey data for the manufacturing sector decline.
