EL7.AI
ForexUpdated×3•Originally published 3 July 2026•Updated 3 July 2026•
2 min read

US Dollar Hits Two-Week Low After Disappointing Non-Farm Payrolls Data

Metallic gauge with a dollar sign dial and signs for payroll miss and treasury yield on a textured orange background.

Key Facts

1The dollar index slipped 0.2% to 100.77 in Asian trade, on course for its steepest weekly decline.
2Softer US labor-market signals triggered a reduction in aggressive Federal Reserve rate-hike bets.
3Major currencies including the Euro, Sterling, and Yen gained ground as the dollar's rally hit resistance.

Reflecting a sharp deceleration in US labor market momentum, the US dollar plummeted to a two-week low against major peers following significantly weaker-than-expected employment data. Non-farm payrolls rose by a mere 57,000 in June, missing estimates by a wide margin, while previous figures for April and May were revised downward by a combined 74,000 jobs. According to reports, this disappointing data has accelerated a sell-off in the greenback as markets increasingly price in a more dovish pivot from the Federal Reserve.

The dollar's retreat was further compounded by volatility in the USDJPY pair, which saw a sharp decline amid persistent rumors of currency intervention to support the Yen. This move occurs against a backdrop of diverging global growth, with UK GDP expanding 0.6% quarter-on-quarter per market data on June 30, 2026, and Eurozone economic sentiment improving to 95 points. The combination of weak US labor data and steadying international growth is narrowing the monetary policy gap that previously favored the dollar.

Traders should closely monitor the DXY index as it tests support levels below 100.50 (close June 30, 2026) following the payrolls shock. Looking ahead, the Chinese Manufacturing PMI, which printed at 50.3, remains a key indicator for global risk sentiment. Additionally, upcoming commentary from Fed officials will be scrutinized for any shifts in interest rate guidance in light of the deteriorating employment landscape.