Although there has not been significant data published for EUR during the previous week, there has been few important ones for the US, which moved the market. The US jobs and wages data are closely watched by the market, because they are first indicators of a potential for further slowdown or increase in inflation figures. In this sense, published data on non-farm payrolls shows added 209K jobs in June, much lower from market expectation of 225K. Unemployment rate dropped to the level of 3.6% from 3.7% in May. What worries the market the most is an increase in average hourly earnings of 0.4% m/m or 4.4% y/y, which might potentially heat up the inflation again. This was a first signal to the markets on potential further rate hike by the Fed, which increased to 92% for a hike to occur at July's FOMC meeting. Whether the Fed is perceiving the figures same as the market, is about to be seen as of the end of July.
EURUSD reacted on jobs figures with a move from 1.084 to the level of 1.096, where the market was closed on Friday. RSI reached level of 50 during the week, however, the indicator changed its course to 59 as of the end of the week. Moving average of 50 days continues with its modest convergence toward its MA200 counterpart, which might be an initial indication over a potential cross in the coming period.
EURUSD continues its struggle to sustain the 1.09 level. This struggle might continue during the week ahead, however, charts are not pointing on a potential for higher grounds. Short term reversal might be ahead, with currently high potential for 1.08 to be tested for one more time.
Important news to watch during the week ahead are:
Euro: Inflation rate in June for Germany, ZEW Economic Sentiment Index for Euro Area, ECB Monetary Policy Meeting Accounts,
USD: Inflation rate in June, Producer Price Index in June, Michigan Consumer Sentiment in June
EURUSD reacted on jobs figures with a move from 1.084 to the level of 1.096, where the market was closed on Friday. RSI reached level of 50 during the week, however, the indicator changed its course to 59 as of the end of the week. Moving average of 50 days continues with its modest convergence toward its MA200 counterpart, which might be an initial indication over a potential cross in the coming period.
EURUSD continues its struggle to sustain the 1.09 level. This struggle might continue during the week ahead, however, charts are not pointing on a potential for higher grounds. Short term reversal might be ahead, with currently high potential for 1.08 to be tested for one more time.
Important news to watch during the week ahead are:
Euro: Inflation rate in June for Germany, ZEW Economic Sentiment Index for Euro Area, ECB Monetary Policy Meeting Accounts,
USD: Inflation rate in June, Producer Price Index in June, Michigan Consumer Sentiment in June
