EUR/USD spikes to fresh multi-week tops, beyond 1.1300 handle post-NFP

   •  The US economy added 75K new jobs in May vs. 185K expected and 263K previous.
   •  Unemployment rate holds steady at 3.6% and wage growth data fall short of estimates.
   •  The data reinforce Fed rate cut expectations and exert some fresh pressure on the USD.

The EUR/USD pair reversed a mid-European session dip to mid-1.1200s and jumped to fresh multi-week tops in reaction to dismal US monthly jobs report.

The US Dollar came under some renewed selling pressure and finally broke down of its daily consolidative trading range after data released on Friday showed that the US economy added 75K new jobs in May.

The headline NFP print was weaker than consensus estimates pointing to the addition of 185K new jobs and also worse than the previous month's downwardly revised reading of 224K (263K reported earlier).

Meanwhile, the unemployment rate held steady near a multi-decade low level of 3.6%, albeit average hourly earnings recorded a lower than expected monthly growth of 0.2% and ticked down to 3.1% on yearly basis.

The data reinforced market expectations that the Fed will eventually move to cut interest rates by the end of this year and exerted some fresh downward pressure on the major, lifting the pair back above the 1.1300 handle.

It, however, remains to be seen if the pair is able to capitalize on the positive momentum or once again fails to sustain at higher levels, which might prompt some aggressive technical selling on the last trading day of the week. 

Technical levels to watch