U.S. Dollar Higher As Rate Cut Bets Ease After Strong Jobs Data

(RTTNews) - The U.S. dollar firmed against its major counterparts in the New York session on Friday, as stronger-than-expected jobs data for May reduced hopes of an interest rate cut by the Federal Reserve in September.

Data from the Labor Department showed that non-farm payroll employment surged by 272,000 jobs in May after climbing by a downwardly revised 165,000 jobs in April.

Economists had expected employment to increase by about 185,000 jobs compared to the addition of 175,000 jobs originally reported for the previous month.

Meanwhile, the report said the unemployment rate crept up to 4.0 percent in May from 3.9 percent in April. The unemployment rate was expected to remain unchanged.

Treasury yields have surged following the release of the report, with the ten-year yield rebounding from its lowest levels in over two months.

Strong jobs data prompted investors to scale back expectations for a rate cut in September.

The greenback climbed to 8-day highs of 1.0805 against the euro and 0.6105 against the kiwi, from yesterday's close of 1.0887 and 0.6194, respectively. The greenback is seen finding resistance around 1.06 against the euro and 0.58 against the kiwi.

The greenback appreciated to a 4-day high of 1.2715 against the pound, reversing from a 3-day low of 1.2813 seen at 8:30 am ET. At yesterday's trading close, the pair was quoted at 1.2790. Immediate resistance for the currency is seen around the 1.24 level.

The greenback moved up to a 3-day high of 0.8972 against the franc, from a 2-1/2-month low of 0.8880 hit at 3 am ET. The pair was worth 0.8892 at yesterday's close. If the greenback rises further, it is likely to test resistance around the 0.92 region.

The greenback advanced to a 4-day high of 157.07 against the yen, from a 2-day low of 155.11 seen at 3:30 am ET. At Thursday's close, the pair was valued at 155.60. The currency is likely to locate resistance around the 160.00 level.

The greenback spiked up to more than a 4-week high of 1.3758 against the loonie, up from a 3-day low of 1.3661 hit at 5 pm ET. The pair had finished yesterday's trading session at 1.3670. Next key resistance for the currency is seen around the 1.39 level.

The greenback touched more than a 3-week high of 0.6580 against the aussie from Thursday's close of 0.6666. Should the greenback continues its uptrend, 0.63 is possibly seen as its next resistance level.