Global macro overview for 06/02/2017:
The Bureau of Labor Statistics revealed on Friday that Non-Farm Payrolls rose 227,000 in January, which beat the market expectations of 170,000 jobs and the last month figure of 154,000. The unemployment rate increased slightly to 4.8% from 4.7% a month ago. The average hourly earnings grew 0.1% in January, following the prior month's downwardly revised 0.2% and falling behind the 0.3% rise market forecast. The data suggest the job market is the US is still growing, but not that rapidly as a year ago. Nevertheless, the Federal Reserve policy makers are still in favor of at least three interest rate hikes in 2017 and the first hike can come as soon as in March. In conclusion, the data-dependent FED officials will now wait-and-see whether the US job market is still slowly growing and if the conditions will not deteriorate significantly, they will keep their promises regarding the interest rate hike.
Let's now take a look at the US Dollar index technical picture at the 4H time frame. The recent low had been made at the level of 99.22, just below the important technical support, but so far no follow through occurred. Nevertheless, the market is still trading below the golden trend line, so any break out higher will be considered as the end of the corrective cycle. The next resistance is seen at the level of 100.26 and 101.02 and the next support at the mentioned levels of 99.43 and 99.26.
