Payrolls increased in 31 U.S. states

Good morning from beautiful Hamburg and welcome to our latest Daily FX Report for this week. The European Central Bank is embarking on a third tour of duty in Athens, with victory less certain than ever. Officials holding a telephone call on Wednesday to discuss the Emergency Liquidity Assistance that keeps Greece’s financial system alive will be mindful that their decision is just a precursor to a bigger task. They’re about to send a team back to the Greek capital to monitor compliance with austerity policies that the government accepted in return for a bailout deal. The ECB has an interest in seeing Greece make good on its commitments, as the institution is embroiled there on multiple fronts from saving the banks to deciding when to include the nation in monetary stimulus. If the government of Prime Minister Alexis Tsipras fails to convince on reforms, the ECB will once again be burdened with the dilemma over whether it’s obliged to let the lenders collapse.

Anyway, we wish you a successful trading day!

Market Review – Fundamental Perspective

Payrolls increased in 31 U.S. states in June and the unemployment rate fell in 21 as the labor market made strides across the nation. New York led the advance in employment with a 25,500 gain, followed by California with 23,000 more jobs, figures from the Labor Department showed Tuesday in Washington. Employers are taking on workers as the world’s largest economy picks up pace, recovering from cutbacks related to the plunge in oil prices and headwinds including weak overseas markets. Progress on employment is among reasons Federal Reserve policy makers are looking at raising interest rates this year. The U.S. jobless rate fell to a seven-year low of 5.3 percent, while wages stagnated and the size of the labor force receded. Even with lingering woes in the oil industry in Texas, the state’s jobless rate dropped to 4.2 percent from 4.3 percent in the previous month. Crude slumped below $50 a barrel in New York on Monday for the first time in more than three months on speculation that Iranian shipments will climb, extending a global glut. Oil’s recovery from a six-year low has faltered amid speculation the surplus will be prolonged as U.S. drillers return rigs to fields and Iran seeks to regain market share. Fed Chair Janet Yellen earlier this month repeated that the central bank is likely to raise its main interest rate this year, assuming its forecasts for stronger growth and lower unemployment are realized.

Daily Technical Analysis

Par.FCE (Daily)

The French stock market index climbed close to the high at 5269 after touching the downward trend line. Both indicators turned to the long side now but the value decreased yesterday for the first time in the gaining period. It might be possible that the correction continues to the level of one Exponential Moving Average to reach ‘fair’ market value. The long term trend should be considered.

Support & Resistance (Daily)