U.S. Dollar Soars As Non Farm Payrolls Beat Estimates

Published: June 05, 2026

Author: Vladimir Zernov

Key Highlights

• EUR/USD fell below 1.1550 as traders reacted to U.S. job market data.
• USD/CAD rose towards 1.3950 amid a sell-off in precious metals.
• USD/JPY reached new highs as Treasury yields increased.

U.S. Dollar Index Performance

The U.S. Dollar Index (DXY) surged following a robust Non-Farm Payrolls (NFP) report, which revealed that the U.S. economy added 172,000 jobs in May, significantly surpassing the analyst forecast of 85,000. The previous month's job addition was also revised upward from 115,000 to 179,000. The unemployment rate remained steady at 4.3%, aligning with expectations.

This strong employment data bolstered the dollar as traders anticipated a hawkish stance from the Federal Reserve. The DXY is currently attempting to break through resistance levels at 99.70 – 99.85, with potential upward movement towards 100.50 – 100.65 if successful.

EUR/USD Analysis

EUR/USD is under pressure as the strength of the U.S. job market weighs on the euro. The nearest support for EUR/USD is at 1.1500 – 1.1515. A successful test of this level could lead to further declines towards 1.1415 – 1.1430. The Relative Strength Index (RSI) indicates oversold conditions, but there is still potential for additional downside momentum.

GBP/USD Insights

GBP/USD has also retreated, testing support levels at 1.3335 – 1.3350. The decline is attributed to the overall strength of the dollar and disappointing data from the UK, where the Halifax House Price Index showed a month-over-month decline of -0.1%, contrary to expectations of a +0.1% increase. If GBP/USD falls below 1.3335, it may target the next support at 1.3215 – 1.3230.

USD/CAD Developments

USD/CAD is experiencing gains as demand for commodity-related currencies diminishes, influenced by a significant sell-off in precious metals. Gold prices dropped by -3.3%, and silver fell by as much as 7%. In Canada, the unemployment rate decreased from 6.9% in April to 6.6% in May, while the Ivey PMI improved from 57.7 to 58.2, exceeding expectations. USD/CAD is approaching resistance at 1.3950 – 1.3965, with potential for further gains if it surpasses 1.3965.

USD/JPY Trends

USD/JPY is testing new highs, driven by rising Treasury yields, with the 2-year yield surpassing 4.16% and the 10-year yield around 4.54%. Despite the upward momentum, traders remain cautious about potential interventions from the Bank of Japan. If USD/JPY maintains levels above 160.00, it could advance towards resistance at 161.50 – 162.00.

Conclusion

The strong U.S. job market data has significantly impacted currency trading, particularly strengthening the U.S. dollar against major pairs. Traders are closely monitoring upcoming economic indicators and central bank policies that could further influence market dynamics.