Global macro overview for 10/08/2015:
Last Friday, the data release from the US has confirmed the improving economic conditions again, especially on the US labor market. The strong NFP number of 215K created jobs, another decline in unemployment rate to 5.3%, an increase in average hourly rate of 0.2, and a decrease in participation level to 62.6% support the interest rate scenario for the month of September. However, the recent inflation readings were not that good and the Fed targeted inflation level of 2% will not be met even in the most optimistic forecasts. This might be why the September rate hike will be postponed to at least December 2015.
The mixed EUR/USD reaction during NFP data release did not resulted in any overall important breakthrough on this pair and the bias is still bearish in the medium term. The golden trendline has been tested from the downside and got rejected. Next support comes at the level of 1.0808.
