The Bureau of Labor Statistics reported a loss of 23,000 jobs in July, far below the 85,000 consensus, pushing the dollar lower and sending gold above $4,350.
Alpha Score of 61 reflects moderate overall profile with strong momentum, weak value, moderate quality, moderate sentiment.
The U.S. dollar tumbled across the board on Friday after the July non-farm payrolls report landed well below economists' expectations. Non-farm employment fell by 23,000, the Bureau of Labor Statistics said, against a consensus forecast of an 85,000 gain. The prior month's figure was revised down to 20,000 from 57,000.
The unemployment rate dropped to 4.1% from 4.2%, a decline driven entirely by a fall in the labor-force participation rate to 61.4%, the lowest in more than five years. Average hourly earnings rose 0.1% month on month, below the 0.3% expected. The weak data reinforced the signal from Monday's ADP private payrolls report, which also showed a hiring slowdown, traders said.
U.S. bond yields slid after the release, deepening expectations that the Federal Reserve will hold off on any rate increases for the foreseeable future. The dollar's slide lifted gold, the euro, and the yen.
Gold jumped 2.73% on the day, briefly touching 4,370 before settling near 4,356. The move breached the 4,287 resistance and the 78.6% Fibonacci retracement of the June–July downswing, traders noted. The next barrier is 4,382. A break above that opens the way to the late-May highs at 4,584, with a potential stop at the 4,500 psychological level.
On the downside, a retreat below 4,287 would target the 61.8% Fibo retracement at 4,213, then the 4,161 support.
The euro rose 0.34% to seven-week highs, completing the measured move of a double-bottom pattern. The pair touched 1.1577, the highest since mid-May, and kept that resistance under pressure. A break above 1.1577 would open the 1.1671 level, site of October and December 2025 and May 2026 highs, one trader said. A rejection could trigger profit-taking toward the 1.1480 support, the neckline of the double bottom. Below that, 1.1414 and 1.1363 offer further support.
USD/JPY slid 0.53% after the jobs data, briefly violating the 157.64 support before buyers stepped in. The pair continues to test that level as U.S. yields fall, extending the yen's gains from last week's joint intervention by Japanese and U.S. authorities. A breakdown of 157.64 would bring in the 155.51 support, the 61.8% Fibo retracement of the February–April upswing, traders said. Below that, the 154.50–154.26 zone offers support. A bounce from 157.64 would allow a recovery toward 160.53, with a potential pitstop at 159.52.
For more on how the dollar's weakness is affecting other pairs, see the forex market analysis page. The 157.64 support remains under pressure, with immediate focus on whether the BOJ's intervention stance shifts.
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