It has been a very intense week of market movers involving the United States, while the EUR / USD exchange has continued to strengthen despite the data published on Friday on Non Farm Payrolls that stunned the market.
Non Farm Payrolls of June have stunned the market as new jobs in the non-agricultural sector were 222.000, against an average of 179.000 units estimated by analysts.
Amounts in the month of May have also been revised to 138,000 units.
The second macroeconomic figure for the United States was the unemployment rate, which in June posted a 4,4% away from the consensus and previous survey data, both at 4,3%.
Lastly, the average US wage, which in the previous survey had risen by 0,1%, in June was +0,2%, which however disappointed the analysts’ forecasts of 0,3%. The participation rate has, however, gone from 62,7% to 62,8%.
Always in the US, the services industry improved according to the PMI data published on Thursday. The US PMI index rose to 54,2, against analysts expectations of 53. The market mover’s performance in the previous month was 53.
Moving from one english country to another, this week’s UK macroeconomic data dramatically influenced the EUR / GDP exchange rate.
Industrial production, where analysts had predicted a 0,4% increase on a monthly basis and 0,2% on an annual basis, showed two flexions of 0,1% and 0,2%, respectively.
Same fate touched also to the manufacturing production. Analysts predicted an increase of 0,5% on a monthly basis and an increase of 1% on an annual basis. The result was 0,2% decrease in the first case and a braking rate of 0,4% in the second.
The United Kingdom’s trade balance reported a deficit that rose to 11,86 billion in May and disappointed expectations at 10,8 and the same British pound. The non-EU trade deficit also rose sharply, rising from 2,62 to 3,8 billion.
The pound collapsed immediately and the EUR / GBP flied to the maximum of nearly two weeks.
While all of these data were published, the European Union and Japan gave a slap to the protectionist policies.
The two countries have signed a political treaty for a free trade agreement to be formalized in the next months.
The announcement came from a joint press conference by Jean-Claude Juncker, President of the European Commission, the President of the European Council Donald Tusk and Japanese Prime Minister Shinzo Abe.
Next week, July the 10th to the 14th, will not be particularly rich in Macro data on the Economic Calendar.
Among the most important market makers of the week, we will surely find those on Italian inflation and trade balance, which will be released at the same time by ISTAT.
Also focusing on the new wave of data on the UK, which concern particularly the British labor market while the country is in full Brexit-cyclone.
On the monetary policy front, the most important market mover of the week will be the Canadian interest rates, while new data on oil stocks will influence oil prices in one way or another.