Stronger-than-expected US payrolls data lifts the Dollar, reducing Fed rate cut bets and pushing Treasury yields higher.
The US Dollar surged against the Swiss Franc on Friday after May Nonfarm Payrolls rose by 172K, exceeding expectations and more than doubling the forecast. April’s figures were also revised upward to 179K from 115K, while the Unemployment Rate remained at 4.3%.
The data signals a rebound in US labor market momentum, easing concerns over a slowdown that had prompted three Fed rate cuts earlier this year. With inflation still above the 2% target, markets now see a 40% chance of a Fed hike in October, up from 30% before the report.
The Dollar Index climbed toward 100.00, while USD/CHF reached 0.7955, its highest level in two months. Treasury yields also rose as traders priced in a more hawkish Fed stance.