The dollar index has hit a new 11.5 year high following a much better than expected nonfarm payroll figure from the US. USDJPY in particular has benefited from this figure hitting 120.90, the highest level of 2015. With the unemployment figure falling to 5.5%, lower than expected and the explosive headline figure of 295k, it’s little wonder the dollar and US Treasury yields are spiking higher. However, a look deeper and average earnings disappointed coming in lower than expected which has keep the dollar’s gains capped to a degree. This is an important figure for the Federal Reserve, so the data today doesn’t necessarily bring forward interest rate expectations.