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 rally extended to as high as 125.85 last week. Initial bias remains on the upside this week for 61.8% projection of 105.19 to 121.84 from 118.88 at 129.16 next. 21 and 55 EMA are crossed up signalling bullish momentum is still in play for the new week. On the downside, break of 124.40 minor support will turn bias neutral and bring consolidations again before staging another rally.
Later this week investors will be taking a close look at the U.S Retail Sales, Core Retail Sales and US Consumer Sentiment to have a better clue on