EURUSD has managed to rise. Overview for 10.07.2023
The most traded currency pair remains in positive territory on Monday. The current quote in EURUSD is 1.0960.
Friday's block of US employment market statistics left the US dollar without support. Investors were confused: it was expected that strong figures in the labour sector would give the Federal Reserve another strong argument in favour of policy tightening. However, the signals turned out to be mixed.
The unemployment rate in the US for June remained unchanged at 3.6%, as before. Non-farm payrolls increased by only 209,000 jobs, falling short of the forecasted growth of 225,000 and the previous figure of 306,000. Average wages rose by 4.4% y/y, exceeding the forecasted 4.2% y/y.
There are two important signals here. The first one is that the NFP, the crucial release of the season, is slowing down its pace of growth. The second is the strengthening of the inflation component within the payroll report.
The Federal Reserve is likely to raise interest rates at its July meeting, but it will do so without relying on employment data this time.
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