The U.S. dollar slipped against a basket of major currencies on Thursday after U.S. jobs data lagged expectations, pushing out bets for a Federal Reserve rate hike to 2016, while caution ahead of this weekend's Greek referendum limited losses.
Nonfarm payrolls increased by 223,000 last month, the Labor Department said. Adding to the report's soft note, April and May data was revised to show 60,000 fewer jobs were added than previously reported. While the unemployment rate fell two-tenths of a percentage point to 5.3 percent, the labor force participation rate fell to the weakest since October 1977.
"The numbers overall were disappointing, and it calls into question the September rate increase and maybe even the December," said Chris Gaffney, president of EverBank World Markets in St. Louis, in reference to the date the Fed is expected to hike rates.
After the data, futures contracts showed that traders saw January as the first Fed meeting at which a rate hike is more likely than not, based on CME FedWatch, which tracks expectations using its Fed funds futures contracts. Rate hikes are seen as boosting the dollar by driving investment flows into the United States.