Global macro overview for 05/06/2017:
The NFP Payrolls data from the US disappointed global investors. Expectations for Friday's NFP report were set initially at 180k new jobs but were reported at actual 138k jobs. Job gains in March and April were revised down by 66k collectively. The unemployment rate edged down to 4.3% from 4.4% previously and the average hourly earning were reported at the same level of 0.2%. Not good report at all: the NFP score was worse than expected, prior month's data were revised down, weak reading was logged on wage growth. The only positive data from the lower than expected unemployment rate was because of the fact that the participation rate fell to the lowest level in five months.
In conclusion, the worse-than-expected jobs report could influence a bit the Federal Reserve's (Fed) plans to tighten monetary policy at the next meeting on June 13-14 with a rate hike already priced in, but the market's question is whether the central bank may have to consider "even more gradual" removal of accommodative policy. The immediate market reaction might hurt the US Dollar even further, but the overall picture is still more bullish than bearish.
Let's now take a look at the US Dollar Index technical picture on the H4 time frame. The market has dipped down through the technical support at the level of 96.80, but no follow through has occurred. The next support is seen at the level of 95.91 and the next resistance is seen at the level of 97.20.
