The dollar index (DXY00) Friday rose by +0.75% and posted a 1-week high. The dollar jumped Friday on the stronger-than-expected US May payroll report, which reduced expectations for Fed rate cuts. May nonfarm payrolls rose more than expected and May average hourly earnings unexpectedly accelerated, hawkish factors for Fed policy. Weakness in the euro also boosted the dollar after the Bundesbank cut its German 2024 GDP forecast today.
US May nonfarm payrolls rose +272,000, stronger than expectations of +180,000. The May unemployment rate unexpectedly rose +0.1 to 4.0% versus expectations of no change at 3.9%.
