US non-farm payrolls way below expectation, ISM showed the ease of rising costs and supply constraints

USD fell for a fourth straight day on Friday after a much weaker US nonfarm payroll. In August, 235k jobs were added, which was well below the expectation at 728k. However, the unemployment rate dropped as expected from 5.4% to 5.2%. After the release of the data, DXY Index dropped to 91.941. Currently, at press time, the Index is hovering around the 92-level. On a separate note, data from ISM showed moderate growth in the services sector in August. Importantly, there are signs that constraints from rising prices and supply chains are beginning to ease.

JPY gained against USD with USDJPY currently trading at 109.80. It is primarily attributable to a weakening USD. JPY showed little reaction to Prime Minister Yoshihide Suga’s decision to step down at the end of the month.