Usd rallies after non farm payrolls jump to 165,000
ITF Team3 min read
The U.S. dollar surged on Nov 6, 2026 after non‑farm payrolls added 165,000 jobs, pushing EUR/USD toward 1.1150 and lifting USD/CAD above 1.4100.
Key takeaways
- Non‑farm payrolls added 165,000 jobs in October, far above the 65,000 forecast (Nov 6, 2026).
- U.S. unemployment fell to 4.1% in October, down from 4.2% in September (Nov 6, 2026).
- EUR/USD retreated to the 1.1150 area as traders priced the strong U.S. jobs report (Nov 6, 2026).
- USD/CAD broke above 1.4100, testing resistance at 1.4155‑1.4170 after Canada’s employment data missed expectations (Nov 6, 2026).
On Nov 6, 2026 the U.S. dollar rallied sharply after the Labor Department released a much stronger-than‑expected October non‑farm payroll (NFP) figure. The report showed 165,000 jobs were added, well above the consensus estimate of 65,000, and the unemployment rate slipped to 4.1% from 4.2% in September. The surprise boost to U.S. employment reinforced expectations that the Federal Reserve can stay focused on fighting inflation, prompting a broad move higher in the greenback and a pull‑back in major cross‑currency pairs.
The dollar’s strength was reflected across the FX market. EUR/USD fell to 1.1147, hovering near the 1.1150 psychological level, while GBP/USD slipped to 1.3363. On the North‑American side, USD/CAD climbed to 1.4103 and USD/JPY rose to 158.35, testing key resistance zones. The U.S. Dollar Index (DXY) also moved into the 102.35‑102.50 range, with the next resistance at 103.20‑103.35.
How the NFP surprise moved major pairs
The NFP data directly impacted EUR/USD. Traders shifted risk away from the euro as the U.S. labor market proved more resilient than anticipated. Technical levels showed the pair losing ground toward the 1.1150 support. If the pair breaks below that, the next support cluster sits at 1.1110‑1.1125, while a bounce above the 1.1175‑1.1190 resistance could reopen the path toward 1.1250‑1.1265.
GBP/USD also reacted to the dollar’s surge, but the move was compounded by a weak UK housing market reading. The Lloyds House Price Index fell 0.6% in October, versus a forecasted rise of 0.1%, adding pressure to the pound. The pair is testing a support band at 1.3385‑1.3400; a clean break would target the next zone at 1.3285‑1.3300.
Canada’s disappointing job numbers and USD/CAD
In Canada, the labour market missed the mark. Employment fell by 4,700 in October, far short of the expected gain of 13,600, while the participation rate held steady at 64.8% against a consensus of 64.9%. The data underscored a weakening Canadian economy, prompting the loonie to weaken further against the dollar.
USD/CAD surged above the 1.4070‑1.4085 resistance and is now testing the 1.4100 level. Should the pair hold above 1.4100, the next resistance lies between 1.4155 and 1.4170. On the downside, a break back below 1.3950 would revive the 1.3800‑1.3820 support area.
Read also: Bitcoin tests $75k as US nonfarm payrolls jump to 165k
Treasury yields, USD/JPY and the yen’s vulnerability
The U.S. Treasury market reacted to the strong jobs data with higher yields. The 2‑year note pushed past 4.52% and the 10‑year yield settled above 4.85%. Higher real yields make the dollar more attractive, supporting USD/JPY’s attempt to stay above the 158.00‑158.50 resistance zone.
USD/JPY currently sits at 158.35, eyeing the next resistance at 160.00‑160.50. Market participants watch for possible Bank of Japan intervention if the pair breaches 160.00, a level that historically triggers yen‑support measures. Even with intervention risk, the fundamental backdrop remains weak for the yen due to persistently low Japanese inflation and monetary easing.
What traders should monitor next
Key data releases in the coming days will shape the next leg of the dollar’s move. U.S. CPI for October, due later this week, will test whether inflation pressures remain high enough for the Fed to keep rates elevated. In Europe, the ECB’s policy decision scheduled for early December will be guided by the latest retail sales and inflation figures.
In Canada, the upcoming GDP estimate and the Bank of Canada’s policy outlook will be crucial for the loonie. For the yen, any official comment from the BOJ regarding possible market‑intervention thresholds will add volatility to USD/JPY.
- U.S. non‑farm payrolls (Oct 2026): +165,000 (forecast +65,000)
- U.S. unemployment rate (Oct 2026): 4.1% (Sept 4.2%)
- Euro Area retail sales (Sept 2026): -0.7% MoM (forecast -0.1%)
- UK house price index (Oct 2026): -0.6% MoM (forecast +0.1%)
- Canada employment change (Oct 2026): -4,700 (forecast +13,600)
Frequently asked questions
Why did the U.S. dollar rise after the NFP report?
The October NFP showed 165,000 jobs added, far above the 65,000 forecast, and unemployment fell to 4.1%. The surprise reinforced expectations that the Fed can stay focused on inflation, lifting the dollar and pushing pairs like EUR/USD and GBP/USD lower.
What are the next technical levels for EUR/USD after the dollar rally?
EUR/USD is near the 1.1150 support. A break below could send the pair to 1.1110‑1.1125. Conversely, a successful test of the 1.1175‑1.1190 resistance would open the path toward 1.1250‑1.1265.
How does the Canadian employment miss affect USD/CAD?
Canada’s employment fell by 4,700 in October, well below the expected gain of 13,600, weakening the loonie. USD/CAD moved above 1.4100 and now aims for the 1.4155‑1.4170 resistance, while a slip below 1.3950 would bring back support near 1.3800.
Official data sources
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This article is compiled from international market news for information only. It is not investment advice.