Global macro overview for 07/03/2016:
The Non-Farm Payrolls data from last Friday crushed expectations with the 242,000 figure, compared with economists' expectations for 195,000 new jobs. Moreover, the previous NFP data was revised higher to 171,000 from 150,000 previously. The unemployment rate stayed at the level of 4.9% in line expectations, being the lowest level in eight years. Moreover, jobs creation has to slow below 100,000 a month for the jobless rate to start rising again. In conclusion, very good news from the US shows the strength of the US job market after the December 2015 rate hike. The Fed is looking for wage-driven inflation as a catalyst to continue policy tightening, but the next rate hike might not be delivered in March 2016, but much later.
Let us now take a look at the technical picture of the EUR/USD pair after the NFP data was released. The market hit the 38%Fibo at the level of 1.1034 and then reversed lower. Currently, it is trading below the 23%Fibo level and might even accelerate more if the technical support at the level of 1.0825 is violated.
