Global macro overview for 13/09/2017

Global macro overview for 13/09/2017:

The US JOLTS job-openings data increased to fresh record highs in July. According to the US government agency, JOLTS job-openings rose to 6.17mn from a revised 6.12mn the previous month. The data was above consensus expectations of 6.00mn and a fresh record high for the data series. The biggest growth was noticed in trade and support sectors and the decline was noted in manufacturing jobs.

The US job market remains strong and confident. The quits rate, a good measure of how confident workers are in the current labor market, inched up 0.1pp to 2.2%, matching its post-recession high. The layoffs and discharges rate was unchanged from June at 1.2%, indicating low levels of involuntary separations. Nevertheless, the upcoming labor market readings are expected to deteriorate due to Hurricanes Harvey and Irma hindering activity in recent weeks. The scale of the damage done to the US economy can only be roughly estimated at the time of writing, but many analysts say it will be devastating to US GDP. It will definitely influence the US labour market in the form of increase of joblessness claims.

Let's now take a look at the USD/JPY technical picture on the H4 time frame. After a bounce from the level of 107.30, the price rallied toward the technical resistance at the level of 109.84. However, the key technical resistance zone between the levels of 110.61 - 111.04 is still not violated. The market conditions are overbought on this time frame and internal correction is now due. First technical support is seen at the level of 109.84 and 109.41.

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