The dollar tumbled after US Non-Farm payrolls (NFP) data was released as investors speculated that a rise in interest rates this month was unlikely.. The US economy posts weakest monthly weakest reports in September 2016. The sharp fall in Jobs data has certainly lowered the chance of a rate hike increase by FED.
Job data released showed that 38,000 workers were added in the Month of May. This is a significant slowdown and many investors were totally disappointed. The report were affected by the more than 35,000 Verizon workers who went on strike. and classified as unemployed.
Unemployment rate however dropped to 4.7 percent from 5 percent, the lowest since November 2007 mostly a result of nearly 500,000 people dropping out the labour force.
Wages rose a steady 0.2 percent for the month, a gain of 2.5 percent for the year.
FED Chair, Janet Yellen said last week that it would be appropriate to increase borrowing costs "in coming months" if growth continued to pick up and if labour market continues to improve.
Average monthly job gains has fallen below of 240,000 average of last year, a pace that has helped the economy since the height of the recession.
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