Looking ahead this week in the US and the macroeconomic calendar will be quite busy. Beginning on Monday with the release of Manufacturing PMI for the month of June. Tuesday will see the release of both ISM Manufacturing PMI and Construction Spending. Wednesday will be quiet on the back of a US Bank Holiday. No doubt this week attentions will remain firmly focused on Thursdays Nonfarm Payroll report. For this June, the economy is expected to have added 200K new jobs somewhat less than the prior 223k. While the unemployment rate is seen steady at 3.8% in June. Wage growth is seen up 0.3% MoM and 2.7% YoY, matching April figures. The greenback could extend last week’s strong gains if US wage growth shows signs of accelerating.
From a technical perspective, the US Dollar this morning is currently stronger against both the Japanese Yen 110.65 and Great British Pound 1.3200. Steady against the Euro. The Euro was unable to extend its previous week's recovery, currently trading at 1.1670 against the Greenback. The macroeconomic calendar in Europe is full this week kicking off on Monday with the Unemployment Rate Decision followed by Tuesdays release of Retail Sales for the month of June. We continue to expect the EUR/USD pair to hold on key support moves approaching 1.1500 while now any upward push will likely meet resistance around 1.1720.