US Dollar Strenghtened, Sees Strong Jobs Data

By Quasar Elizundia, Expert Research Strategist, Pepperstone

June 3, 2025 

The US Dollar rebounded on Tuesday, recouping part of Monday’s losses, as JOLTS data exceeded expectations and offered reassurance about the resilience of the US labor market. Job openings rose to 7.39 million in April, beating both the prior month and market forecasts. While overall hiring and separations remained little changed, the unexpectedly strong figure underscores continued labor demand despite growing policy uncertainty.

The upbeat labor reading offered a degree of relief following Monday’s disappointing ISM Manufacturing PMI, which signaled a deeper contraction in the sector. The index fell to 48.5 in May, raising concerns about weakening industrial momentum amid renewed tariff pressures.

Nonetheless, caution persists. Fed’s Bostic mentioned the need to see more progress on inflation before supporting a rate cut, which could push yields and the dollar to the upside.

Looking ahead, attention turns to Wednesday’s ISM Services PMI and Friday’s Non-Farm Payrolls, both of which could prove pivotal for near-term rate expectations. While solid labor data currently supports the dollar, persistent trade tensions and industrial softness continue to weigh on sentiment.