NFP Surge Crushes Dollar Bears, DXY Rally Hinges on Sustained Momentum
May payrolls beat weak consensus estimates, sparking a sharp dollar rally. The move's durability now depends on follow-through.
The US Dollar Index (DXY) surged on Friday after the May Non-Farm Payrolls report blew past expectations of a soft 85K gain. Markets had braced for a continued cooling in the labor market, which would have reinforced the case for near-term Fed easing. Instead, the stronger print forced a repositioning, sending USD bulls back into control.
However, the rally now faces a test: can the dollar sustain its gains? Traders are watching for further confirmation in upcoming data before pricing out rate-cut bets entirely. The immediate reaction was violent, but the longer-term trend remains uncertain without additional catalysts.
Source: FXStreet Forex News