Global macro overview for 08/07/2016:
The main event of the week, the NFP Payrolls and Unemployment Rate release is scheduled at 12:30am GMT. Market participants are expecting a nice rebound in this month's figure, up to 175k from 38k a month ago (the smallest monthly increase in the nonfarm payrolls since January 2011). The unemployment rate is expected to increase slightly to 4.8% from 4.7% a month ago. Nevertheless, a better than expected figure today is unlikely to be enough for FED policymakers to switch from dovish to hawkish tone. Investors' expectations for a Fed rate hike in 2016 have collapsed totally following the previous jobs report and then the UK's referendum on EU membership.
Let's now take a look at the EUR/USD technical picture in the 4H time frame. Bulls were too weak to break out above the 1.1180 technical resistance level, so the price stays in the neutral zone, marked by the technical support at the level of 1.1023 and technical resistance at the mentioned level of 1.1180. Market participants are waiting for the NFP Payrolls news.
