Dollar’s Dramatic Reversal After Weak Jobs Report Shakes Markets

The dollar's rally collapsed spectacularly after a disastrous US jobs report sent shockwaves through financial markets. Friday's non-farm payrolls showed just 73,000 jobs added in July, with full-time employment plunging 440,000—a clear signal of economic softening that forced dramatic repricing of Fed rate expectations.

Fed officials Waller and Bowman's synchronized dovish statements minutes before the release now appear prescient. Markets have fully priced in a September rate cut, with short-term yields plummeting in what veteran traders recognize as classic policy panic behavior.

This abrupt shift comes just days after the dollar was riding high on hawkish expectations. The reversal leaves cryptocurrency markets poised for potential upside as investors seek alternatives to traditional assets rattled by the employment data debacle.