Unsurprisingly, US non-farm payrolls disappointed once again. The last piece of our puzzle confirms that the US economy is weakening. Originally forecasted to have added 142k jobs last month, US corporations only added 113k. Even though jobless claims have remained low, we have long learned that just because companies are not firing, does not mean that they are hiring.

With higher energy bills to contend with, companies are no longer as free spending with their cash as they use to be and are forced to delay increases in staffing until demand catches up. Looking at the recent trend of retail sales, this may not be for a while. The overwhelming disappointment of the number has sent the probabilities of a rate hike next Tuesday to near zero. In the off chance that Bernanke does opt to raise rates, it may not necessarily be good for the dollar. With clear signs that the US economy is slowing, a rate hike will only further undermine his credibility and raise the risk of recession.

Looking at the numbers specifically, US corporations added only 113k jobs in the month of July, compared to a forecast of 142k and a reading of 124k for the month prior. However the disappointments did not stop there. The unemployment rate ticked higher to 4.8 percent from 4.6 percent, while the manufacturing sector lost jobs last month. Average weekly hourly increased slightly, indicating that inflationary is still a problem, but average hourly earnings remained unchanged.

Expect more gains in the EUR/USD over the next few days with the Federal Reserve expected to pause and the European Central Bank continuing to raise interest rates "progressively."

Kathy Lien is the Chief Currency Strategist at FXCM.