USD Index Hits 2-Month High on Strong US Labor Market Data

The US Dollar Index surged 0.23% to reach a fresh 2-month high, driven by robust US economic data revealing labor market resilience and persistent inflationary pressures. Today's employment figures showed stronger-than-expected job openings and wage growth, reinforcing expectations that the Federal Reserve may maintain its hawkish stance longer than previously anticipated. The combination of sticky price pressures and elevated labor costs suggests the Fed could delay any potential rate cuts, providing sustained support for the greenback. Technical indicators show the dollar index breaking above key resistance levels, with momentum indicators pointing to further upside potential. Major pairs including EUR/USD and GBP/USD faced selling pressure as traders repositioned for a stronger-for-longer dollar scenario. The data reinforces the divergence between US economic performance and other major economies, potentially extending the dollar's relative strength advantage through the summer months.