Strong Jobs Data Buoys Dollar

The U.S. dollar strengthened against its major counterparts in the European session on Friday, as U.S. job growth beat forecasts in May and jobless rate remained at a 17-year low.

Data from the Labor Department showed that non-farm payroll employment surged up by 223,000 jobs in May after climbing by a downwardly revised 159,000 jobs in April.

Economists had expected employment to increase by 188,000 jobs compared to the addition of 164,000 jobs originally reported for the previous month.

With the jump in employment, the unemployment rate edged down to 3.8 percent in May from 3.9 percent in April. The unemployment rate had been expected to come in unchanged.

The currency rose against its major rivals in the Asian session.

The greenback strengthened to 109.67 against the yen, a 3-day high. The next possible resistance for the greenback is seen around the 111.00 area.

The latest survey from Nikkei showed that Japan manufacturing sector continued to expand in May, albeit at a slower rate, with a manufacturing PMI score of 52.8.

That's down from 53.8 in April, although it remains well above the boom-or-bust line of 50 that separates expansion from contraction.

The greenback appreciated to a 2-day high of 0.9897 against the Swiss franc, from a low of 0.9841 seen at 6:45 pm ET. The greenback is likely to find resistance around the 1.00 area.

The greenback bounced off to 1.1648 against the euro, from a low of 1.1718 hit at 6:00 am ET. Next key resistance for the greenback is likely seen around the 1.15 level.

Final data from IHS Markit showed that the upturn in the Eurozone manufacturing sector showed further signs of cooling in May, as initially estimated.

The factory Purchasing Managers' Index fell to a 15-month low of 55.5 from 56.2 in April. The score matched the flash estimate of 55.5.

The greenback strengthened to 2-day highs of 0.6961 against the kiwi, 1.3008 against the loonie and 0.7514 against the aussie, from its early lows of 0.7020, 0.7573 and 1.2932, respectively. The greenback is poised to challenge resistance around 0.68 against the kiwi, 1.31 against the loonie and 0.74 against the aussie.

On the flip side, the greenback dropped to 1.3338 against the pound, reversing from a 2-day high of 1.3254 set at 1:00 am ET. If the greenback continues its fall, 1.35 is possibly seen as its next support level.

Survey data from IHS Markit and Chartered Institute of Procurement & Supply showed that the UK manufacturing sector expanded at a faster pace in May.

The manufacturing Purchasing Managers' Index rose unexpectedly to 54.4 in May from a 17-month low of 53.9 in April. The score was expected to drop to 53.5.

The U.S. construction spending for April and ISM manufacturing index for May are due shortly.

US Dollar vs Yen (FX:USDJPY)
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