Dollar Gains Fresh Momentum: Market Assesses the Impact of the NFP Report - ActionForex

The US dollar strengthened after a robust May non-farm payrolls report showed payrolls rising by 172,000, well above the 85,000 forecast. The data reinforced the view that the US economy remains resilient and reduced expectations for imminent Federal Reserve easing. Heightened geopolitical tensions in the Middle East added safe-haven demand for the greenback. Traders also prepared for upcoming US data releases that could confirm or challenge the current momentum. USD/CAD edged toward the 1.3960 resistance on the daily chart, with a break above potentially targeting 1.4000-1.4050. USD/CHF climbed toward this year’s March highs in the 0.8020-0.8040 zone, suggesting further upside unless buyers retreat. A near-term pullback could see support around 0.7910-0.7940. Key events include US ADP data at 15:15 (GMT+3) and the CPI release, which will shape the next moves. Overall, the stronger dollar underscores the resilience of US yields and safe-haven demand amid ongoing geopolitical risks. The trajectory will hinge on forthcoming US data and how the market interprets the Fed's policy path, with liquidity remaining robust across more than 50 forex pairs. Traders will watch the next round of macro releases to confirm whether the bullish dollar trend can extend in the coming sessions.