
The latest US jobs report for July has left markets underwhelmed, showing just 73,000 jobs added during the month. That figure came in well below expectations, and the unemployment rate rose slightly to 4.2%. While not a crisis-level shift, the numbers have sparked fresh concern about the strength of the US labour market.
The ripple effects were quick to show in currency markets. The British pound slid nearly 4% over the month — its steepest monthly drop since 2022. Analysts point to a combination of weak US data and renewed global uncertainty that’s weighing on investor sentiment.
The job growth slowdown is making some question whether the US economy is losing steam heading into the final months of the year. It also complicates the picture for the Federal Reserve, which has been walking a fine line on interest rates. Slower hiring could give the Fed more reason to hold off on any rate hikes, or even consider cuts if the trend continues.
For the UK, the fall in the pound is also tied to broader concerns around economic growth, inflation pressures, and how exposed it is to shifts in global demand. Investors are now keeping a close eye on upcoming central bank meetings in both the US and UK to see how policymakers respond.
While the numbers aren’t a cause for panic just yet, they’ve definitely added a new layer of caution across financial markets.