2023.06.0215:22:00UTC+00U.S. Dollar Rebounds As Job Growth Exceeds Expectations

The U.S. dollar erased its early losses against its major counterparts in the European session on Friday, as stronger-than-expected job growth in May pointed to resilience in the labour market.

Data from the Labor Department showed that U.S. employment surged much more than expected in May.

The report showed non-farm employment soared by 339,000 jobs in May after spiking by an upwardly revised 294,000 jobs in April.

Economists had expected employment to climb by 190,000 jobs compared to the jump of 253,000 jobs originally reported for the previous month.

Meanwhile, the Labor Department said the unemployment rate rose to 3.7 percent in May from 3.4 percent in April. The unemployment rate was expected to inch up to 3.5 percent.

The greenback recovered to 1.0734 against the euro, 0.9085 against the franc and 1.2490 against the pound, from an early 9-day low of 1.0779, 3-day low of 0.9034 and more than a 2-week low of 1.2544, respectively. The currency may face resistance around 1.04 against the euro, 0.92 against the franc and 1.21 against the pound.

The greenback rebounded to 0.6074 against the kiwi and 1.3445 against the loonie, reversing from an early 8-day low of 0.6111 and more than a 2-week low of 1.3406, respectively. The next possible resistance for the greenback is seen around 0.59 against the kiwi and 1.37 against the loonie.

The greenback rose back to 139.46 against the yen following the data. The currency is likely to find resistance around the 144.00 level.

In contrast, the greenback fell against the aussie, touching a 10-day low of 0.6638. On the downside, 0.70 is likely seen as its next support level.