Dollar Gains on Strong Jobs Data (06.08.2026)

Global markets started the week on a cautious note as stronger U.S. employment data reinforced expectations for another Federal Reserve rate hike later this year. 

The dollar index remained close to 100 on Monday after rising more than 1% over the previous week, pushing the euro to its weakest level since April and driving renewed pressure across precious metals. Meanwhile, escalating tensions between Israel and Iran continued to support energy prices and inflation concerns, keeping investors focused on the risk of prolonged restrictive monetary policies. In currency markets, the yen moved beyond the key 160 level, reviving intervention speculation, while sterling weakened alongside other major currencies against the resurgent dollar.

Euro Slumps Past 1.1540

The euro declined below $1.1540, hitting its lowest mark since early April as the US dollar surged on stronger U.S. employment data. May nonfarm payrolls jumped by 172,000, blowing past consensus and forcing markets to fully price in a Federal Reserve rate hike later this year. Meanwhile, investors still anticipate a near certain ECB rate hike next week, even as mixed regional data couples hot 3.2% inflation with a revised Q1 Eurozone GDP contraction.

For EUR/USD, the initial resistance is seen at 1.1550, while the closest support is positioned at 1.1510.

Gold Stabilizes Near 4,300

Gold hovered near $4,300 on Monday following last week's 5% plunge to a two-month low, pressured by strong U.S. jobs data. May payrolls jumped by 172,000, lifting December Federal Reserve rate hike probabilities to roughly 70%. At the same time, intensifying Middle East conflict and direct missile exchanges between Israel and Iran pushed crude oil prices upward. These escalating geopolitical risks fueled global inflation anxieties, maintaining elevated volatility across broader financial markets.

First resistance is seen at $4370, with initial support near $4280.

Yen Breaches Critical 160

The Japanese yen weakened past 160 per dollar on Monday, crossing a threshold that frequently sparks official market intervention. The USD strengthened broadly after strong U.S. employment data raised Federal Reserve rate hike expectations for later this year, with further support stemming from intensifying Iran-Israel missile exchanges. Japan’s foreign reserves plummeted in May due to record currency stabilization costs, while persistent domestic inflation pressures keep investors anticipating a Bank of Japan interest rate hike later this month.

Initial resistance stands at 160.90, while the first support is located at 159.40.

Pound Slips Under 1.34

The British pound gave up early gains, falling below $1.34 to its lowest point since mid-May as the USD rallied on better U.S. labor data. May's 172,000 payroll surge forced markets to fully price in a year-end Fed hike. Domestic political uncertainty further dampened sentiment, though investors still expect nearly two Bank of England interest rate increases this year, starting in September.

From a technical view, resistance stands near 1.3410, with support around 1.3300.

Silver Plummets Near 68

Silver hovered near $68 on Monday following last week's near 10% tumble to a two-month low, weighed down by strong U.S. employment data. May's 172,000 payroll expansion increased December Federal Reserve rate hike probabilities to costly territory around 70%. At the same time, intensifying Middle East conflict, highlighted by Iran-Israel missile exchanges and shipping disruptions near the Strait of Hormuz, drove crude oil higher, worsening global inflation anxieties and keeping commodity markets volatile.

From a technical view, resistance stands near $69.00, while support is located around $65.40.