The dollar remained broadly higher against a basket of other major currencies on Friday, after data showed that the U.S. economy added far more jobs than expected last month, sparking optimism over the strength of the job market.
In a report, the U.S. Department of Labor said the economy added 280,000 jobs in May, exceeding expectations for an increase of 225,000. However, April’s figure was revised to a 221,000 rise from a previously estimated gain of 223,000.
The report also showed that the U.S. unemployment rate ticked up to 5.5% last month from 5.4% in April. Analysts had expected the rate to remain unchanged.
U.S. average hourly earnings rose 0.3% in May, beating expectations for a 0.2% gain, after an uptick of 0.1% the previous month.
The pair’s fall from 1.5814 extended lower last week but the pair was held above 1.5088 support/demand zone. Outlook is unchanged. As long as 1.5088 support holds, another rise could still be seen. Above 1.5440 minor resistance will turn bias to the upside for 1.5814 first. Break will extend the rebound from 1.4565 and target 61.8% retracement of 1.7190 to 1.4565 at 1.6187. At this point, we’re slightly favoring that the rebound from 1.4565 is a correction. Thus, break of 1.5088 will indicate that such rebound is completed and turn focus back to 1.4565 low. The current development in the pair with 21 and 55 EMA still maintaining its downward momentum indicates the bears are still in control. A break of 1.5088 support is highly possible and might bring deeper decline to retest 1.4565 low.
Later this week investors would be taking a close look at GBP Manufacturing Production, US Retail and Core Retail Sales, Consumer Sentiment and PPI.