US Jobs Report Is Behind Us, What Is Next?
US Nonfarm Payrolls showed huge moves last week. The US economy produced a gain of 4.8 million jobs, beating the estimate of 3.03 million. The unemployment rate fell to 11.1%, down from 13.3% beforehand. At the same time wage growth remains an area of concern, as wages continue to fall. The US economy has shown signs of recovery, with gains in the past two releases.
On the other hand, WHO official Mike Ryan said on Friday that no vaccine is far enough along that there will be a signal of efficacy. He expects interim results from the solidarity trial of COVID-19 therapeutics within the next two weeks. He added that It's difficult to have a vaccine this calendar year.
Coronavirus outbreak continues to threaten Global Economics More than three dozen U.S. states have seen increases in Covid-19 cases rapidly as of last week. The U.S. accounts for around a quarter of the 10.8 million coronavirus cases recorded worldwide.
In the Eurozone, the PMI numbers have shown steady improvement last week, after being hammered in the first quarter by the coronavirus outbreak.
In the upcoming week, Watch out for US Producer Price Index on Friday. The US PPI is predicted to come out at -0.2% year-on-year basis. While the Core PPI inflation is expected to rise to 0.4% from 0.3%. A higher than expected reading should be taken as positive for the US Dollar.
Besides the Producer Price Index, this week's calendar also features U.S. data on JOLTs Job Openings, Initial Jobless Claims, and Crude Oil Inventories as well as ISM Non-Manufacturing PMI.
If we check the calendar for Eurozone, pay attention to the German Trade Balance, Imports, and Exports numbers on Thursday.
The EURUSD pair showed an upward movement above the 1.1237 main support level and it is moving towards the main resistance level of 1.1307. As long as the pair stays below 1.1307 on a daily basis, the downward movement may continue and we will see the support levels at 1.1237 and 1.1165. On the upside, if the pair rises above 1.1307, the next resistance level can be found at 1.1365.
Support : 1.1237 - 1.1165 - 1.1114
Resistance : 1.1307 - 1.1365 - 1.1421
The GBPUSD pair found buyers from the 1.2286 main support level and then showed an upward movement last week. Focus on the key resistance level of 1.2502. In order for the upward movement to gain more power, it needs to break out and stay above 1.2502 on a four hourly basis. Should this occur, we will see 1.2572 as the next resistance level. Otherwise, we will follow the support levels at 1.2428 and 1.2364 again.
Support: 1.2428 - 1.2364 - 1.2286
Resistance: 1.2502 - 1.2572 - 1.2671
Focus on the 107.52 main support level in the USDJPY pair. As long as the pair stays above 107.52, on a four hourly basis, the daily resistance levels can be found at 107.82 and 108.14. In contrast, if the price drops below 107.52, the next support level will be at 107.22.
Support : 107.52 - 107.22 - 108.98
Resistance: 107.82 - 108.18 - 108.52
Keep your eye on the 18.16 key resistance level. In order for the upward movement to gain more power, it needs to break out and stay above 18.16 on a four hourly basis. Should this occur, we will see 18.61as the next daily resistance level. Otherwise, we will follow the support levels at 17.63 again.
Support: 17.63 - 17.11 - 16.80
Resistance: 18.16 - 18.61 - 19.04
06 Jul 20 (Mon)
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