Dollar rallies after positive jobs data; U.S. stock futures extend losses

Dollar index surged 1% after data indicated U.S. payroll numbers rose more than expected in May.

Worker pay increased, showing companies were upbeat about the U.S. economy’s prospects after an early-year slump, says Bloomberg. 

The U.S. Department of Labor said in a report that the economy added 280,000 jobs in May, exceeding expectations for an increase of 225,000. However, April's figure was revised to a 221,000 rise from a previously estimated gain of 223,000.

The unemployment rate crept up to 5.5 percent as more people entered the labor force, while hourly earnings rose from a year ago by the most since August 2013.

Retailers hired a net 31,400 workers and employment in leisure and hospitality jumped 57,000. Payrolls at temporary-help agencies climbed 20,100.

Meanwhile, the average workweek for all employees held at 34.5 hours, the Labor Department’s report signaled.

The ICE dollar index gained 1.2%.

EUR/USD dropped 1.28% to 1.1092, pulling away from session highs of 1.1280.

The joint currency was hurt after Greece deferred a $339 million payment to the International Monetary Fund due Friday, submitting a request to bundle payments totaling about $1.7 billion due this month into one payment.

In the meantime, U.S. stock-futures indexes added to losses after the upbeat jobs data, while Greece-fueled worries weighed on European stocks, says MarketWatch.

Stock-futures for the S&P 500 fell 5 points, or 0.3%, to 2,093.50.

The Dow Jones Industrial Average was off 47 points, or 0.3%, to 17,876.

Futures for the Nasdaq-100 slid by 16 points, or 0.4%, to 4,479.25.