Global macro overview for 05/02/2016:
Mixed data has been released this afternoon regarding the US job market. The NFP number was lower than market expectations at 151 K vs. 190K and 262K prior. Nevertheless, the unemployment rate dropped to the level of 4.9% from 5.0% a month ago. The average hourly earning increased to 0.5% m/m (2.5% y/y) from 0.3% (2.2% y/y) last month. In conclusion, the data were not that bad to spark sell-offs on the market, but the data-depended Fed might now have a tough problem to consider the employment change to be well below the expectations. The further rate hikes might now be seriously questioned.
Let's take a look at the EUR/USD pair after the news release. After hitting the resistance level of 1.1236, the initial reaction was negative for the NFP number and it looks like bears are in control now. The next important level to keep an eye on is 1.1059.
