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Dollar Extends Bounce Off Support on NFP Beat

  • The May NFP report was swallowed positively by markets Friday, with the headline beat on job gains allied with positive net revisions to make for a solid release. Markets brushed off the unchanged unemployment rate (median was for a 0.1 ppts drop) to help the USD Index bounce further off support at the 50-dma, which remains a key for markets headed through June and the next Fed rate decision.
  • The JPY was among the weakest currencies in G10 Friday, with EUR/JPY hitting fresh YTD highs as the cross rallied through the Y140.00 bull trigger (the April 2022 high) to hit the highest levels since 2015.
  • USD/CAD extended the recent downtick into the Friday close, extending the CAD rally that followed the hawkish nudge on Thursday from Dep Gov Beaudry, who noted that the Bank can act “more forcefully” on rates.
  • The recovery in NZD/USD across the May stalled Friday as the pair failed to mount an attempt on the key resistance at the 0.6601 50-dma.
  • Rate decisions from the Eurozone, Australia, India, Russia and Poland should keep markets busy next week. China PMI, trade balance & inflation releases are the data highlights alongside Japanese GDP.
MNI London Bureau | +44 203-865-3809 |
MNI London Bureau | +44 203-865-3809 |

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