July US job openings fell to the lowest since April 2021 in a sign that the labor market is weakening.
JOLTS job openings
Fed Chairman Jerome Powell highlighted that the FOMC doesn’t want to see further weakening in the jobs market but this number paints a picture of an economy where labor is in less demand. That tilted the odds towards a 50 basis point rate cut in September, with pricing now showing a 47% chance of 50 bps and 53% chance of 25 bps. Those numbers will swing further based on Friday’s non-farm payrolls.
The US dollar fell across the board after the data, with USD/JPY sinking to 144.04 from 144.80 before bouncing about 25 pips.
USDJPY 10 mins
Elsewhere the dollar fell 15-25 pips.