The first call for the Fed

The US dollar lost a number of positions to the euro and the British pound, as well as to other world currencies after the release of a weak report on the US labor market, which pointed to an increase in the unemployment rate. Also, a supplementary indicator of average earnings could play an additional pressure, which indicates a low wage growth rate that affects many economic indicators in the future.

According to the report of the US Department of Labor, the number of jobs outside the country's agriculture in June this year increased by 213,000, which was much better than the forecasts of economists who counted on an increase of 195,000.

As I noted above, the growth of unemployment had a negative effect on the rate of the American dollar. According to the same report, the unemployment rate rose from 3.8% to 4.0% in June, which could "pause" the Fed's plans to further raise interest rates. Economists expected that unemployment in the US will remain unchanged at 3.8% in June.

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The increase in wages was moderate in June. According to the data, the average hourly earnings increased by 5% to 26.98 dollars, while wages increased by 2.7% in June compared to the same period of the previous year.

On Friday, data was also released on the reduction in the foreign trade deficit from the US in May this year. This happened due to a sharp increase in the supply of soybeans and other export goods. However, the introduction of trade duties on a number of goods from China and Europe will seriously affect this indicator in the near future.

According to the report of the US Department of Commerce, the deficit of trade in goods and services in the US fell by 6.6% in May 2018 compared to the previous month and amounted to 43.05 billion US dollars in May. Exports grew by 1.9% compared to April. Import for the same period increased by 0.4%. Economists predicted that the deficit in May will be 43.6 billion dollars.

As for the technical picture of the EUR/USD pair, the breakthrough of the important resistance level at 1.1720 led to the formation of a new uptrend in the trading instrument with the key objectives of 1.1790 and 1.1840, which buyers will aspire to in the near future. It is likely that to confirm the breakdown of the range 1.1720, a downward correction will be formed. Testing 1.1720 on the volume from top to bottom will be an additional signal to the opening of long positions in risky assets.

The Canadian dollar rose against the US dollar, even though Canada's foreign trade deficit widened in May. This happened due to the fact that the export of cars has declined, and the import of aircraft from the US has grown dramatically.

According to the National Bureau of Statistics of Canada, the deficit of foreign trade in May 2018 was 2.77 billion Canadian dollars, while economists expected the deficit to be 2.2 billion Canadian dollars. Exports from Canada decreased by 0.1% compared to the previous month and amounted to 48.34 billion Canadian dollars. As I noted above, imports increased by 1.7%, to 51.12 billion Canadian dollars.

The material has been provided by InstaForex Company - www.instaforex.com