Global macro overview for 03/07/2015 – post-NFP situation on EUR/USD
Yesterday's June NFP number was slightly lower than estimated 231,000 and it showed only 223,000 of newly created jobs (254,000 in May). Different situation could be observed in unemployment rate. The market consensus was another decline to 5.4% after strong May NFP reading, but the decline was even deeper to 5.3% – overall a very good number. The average hourly earnings rose only 2% in June after 2,3% in May, so there is slight disappointment. Similar situation was with the participation rate reading that slid slight from 62,9% in May to 62.6% in June. Nevertheless, the somehow disappointing figures from the US labor market did not really made the common currency to surge higher as the market is now waiting for the Greek referendum results on Sunday.
Current EUR/USD situation: there wasn't too much buying activity after the NFP news release yesterday and the market stayed range bounded for the all trading day. Currently the Greece referendum results are the most important single fundamental factor that will affect the EUR/USD rate over the weekend. So if you are in doubt, it is advised to close the remaining open positions before the Friday market close.
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