The U.S. Dollar Index experienced a pullback following the release of a disappointing Non Farm Payrolls report. The report revealed that the economy only added 175,000 jobs in April, falling short of analysts’ expectations of 243,000. Additionally, the Unemployment Rate rose from 3.8% in March to 3.9% in April, missing the forecasted rate of 3.8%. The ISM Services PMI also declined from 52.0 in March to 49.4 in April, below the anticipated 51.4. As a result, Treasury yields dropped, putting further pressure on the U.S. dollar.
If the U.S. Dollar Index continues to decline and falls below the 105.00 level, it is likely to move towards the next support level in the 104.40 – 104.60 range.