Expectations of a rate hike from the U.S. Federal Reserve in June took a nose dive on Friday, after data from the Labor Department showed nonfarm payroll grew by just 38,000 in May, falling well short of market expectations for 162,000 jobs.
The poor employment numbers for May signaled the economy was still in recovery mode, a sharp contrast to the hawkish statements from the Fed in recent weeks.
Some experts said while a June hike is off the cards, a July hike would depend on a decent rebound in the June nonfarm payroll numbers. Others expected the Fed to be more cautious.
Steven Englander, managing director and global head of G10 foreign exchange strategy at Citi, said in a note that Fed chair Janet Yellen and other Federal Open Market Committee participants would not entirely write off a summer hike, "but the caution will return."