Global macro overview for 11/07/2016:
The NFP Payrolls data was a huge surprise last Friday as it beat the market expectations of 175K with a number of 287K. The unemployment rate rose slightly to the level of 4.9%% from 4.7% a month ago. It was slightly above the market consensus of 4.8%. We can see that many analysts had forecast job growth to rebound. They were also highly waiting to see if the gloomy figures from May were repeated. If they had been repeated, it could have been a hint that the economy might be sinking into a deeper trouble. In conclusion, the overall figures were very good and more and more market analysts are now re-evaluating a possibility of another rate hike this year.
Let's now take a look at the US dollar index after the data was published. After a bounce from the technical support at the level of 95.32 the market is now trying to break out above the technical resistance at the level of 96.72. If the bull camp will manage to do this, then the next resistance is seen at the level of 98.58.
