May Nonfarm Payrolls rose to 172K, nearly doubling the 85K estimate, fueling a sharp USD rally and Fed rate cut doubts.
US Nonfarm Payrolls surged to 172K in May, far exceeding the 85K consensus forecast and reversing expectations of a cooling labor market. The print, revised up from 179K in April, sent the US Dollar Index (DXY) soaring past 100.00 for the first time in eight weeks.
The report showed the Unemployment Rate steady at 4.3%, while U6 underemployment fell to 8.1%. Wage growth eased to 3.4% YoY from 3.6%, though job gains were concentrated in leisure, healthcare, and local government. Finance sector employment declined.
The stronger-than-expected data reinforced hawkish Fed signals, with markets pricing out near-term rate cuts. Cleveland Fed President Hammack’s recent remarks on potential rate hikes added to the Dollar’s momentum.