13.03.201711:07 Forex Analysis & Reviews: Global macro overview for 13/03/2017

Global macro overview for 13/03/2017:

On Friday, the U.S. dollar weakened versus a basket of other major currencies after the latest US employment report showed that job growth exceeded expectations, but wage growth remained sluggish. According to information published on Friday by the U.S. Department of Labor, the economy created in February 235,000 new jobs compared to the previous month as the construction sector recorded the largest increase in nearly 10 years due to the atypical weather conditions for this season. The unemployment rate fell in January from 4.8% to 4.7% due to a greater influx of people into the labor market. However, average hourly earnings rose in February by only 0.2% compared with the same period last year, missing market expectations of a 0.3% gain. This very slight upward trend resulted in a 2.8% increase in the wage level on a yearly basis that in turn confounded expectations of some investors. The U.S. short-term contracts on interest rates recorded a slight change after the publication of the Non-Farm Payrolls report, thereby increasing the likelihood of raising the US central bank interest rates next week. The FED meeting has been scheduled for Wednesday 08:00 pm GMT.

Let's now take a look at the EUR/USD technical picture in the H1 time frame. The market retraced up to the 61%Fibo at the level of 1.0700 making the level of 1.0713 the local swing top. Currently, the price is in a corrective mode as it is trading next to the intraday support at the level of 1.0678. The next important support zone is the gray area between the levels of 1.0640 - 1.0625.