US Dollar falls sharply after NFP as US yields plummet

• Nonfarm Payrolls rise below expectations in October.
• The US Dollar tumbles as Treasury bonds jump.
• The US Dollar Index falls to one-month lows below 105.30.

The weak US jobs report triggered a strong market reaction, sending the US Dollar sharply lower. The US Dollar Index is falling by 0.80%, marking its worst performance in months, as Wall Street futures indicate a positive opening, extending the rally. 

In October, the US economy added fewer jobs than forecast, with 150,000 jobs compared to the expected 180,000. The unemployment rate rose unexpectedly from 3.8% to 3.9%.

Following the report, US yields collapsed. The 2-year yield fell from nearly 5% to 4.85%, while the 10-year yield dropped from 4.64% to 4.55%. Wall Street futures surged, and commodity prices jumped but later trimmed some of their gains.

The US Dollar Index (DXY) retreated from 105.90 to 105.25, reaching its lowest level since September 20. The DXY remains near daily lows and is under pressure. The next support level is seen at 105.10, followed by 104.65.

On a weekly basis, the DXY is experiencing its biggest decline since July, breaking out of a four-week range trading pattern and correcting further from the year-to-date high at 107.34 (October 3 high).

Technical levels