The US dollar strengthened after the release of the May Nonfarm Payrolls (NFP) report, indicating increased labor demand and a rebound in wage growth. This development has reduced expectations for a rate cut by the Federal Reserve (Fed).

At the same time, the announcement of the US Consumer Price Index (CPI) data for May has raised concerns among investors about whether inflation can be controlled. Additionally, the Fed needs to bring inflation back to its target range of 2% before it can reduce interest rates.