Strong NFP Lifts DXY to 106.5, Broad Pressure on Non-Dollar Currencies

The US Bureau of Labor Statistics released the May nonfarm payrolls report showing 275,000 jobs added, far exceeding the 180,000 consensus, with March and April figures both revised higher. The unemployment rate held at 3.7% and average hourly earnings rose 4.1% year-on-year, keeping wage inflation pressure elevated. Following the release, market expectations for Fed rate cuts this year fell sharply, and DXY broke through 106 quickly, touching a high of 106.5. EUR/USD fell to 1.0790, USD/JPY broke above 155, and GBP/USD retreated below 1.2700. The Treasury yield curve shifted up broadly, with the 2-year note yield rising to 4.95%.