Daily Outlook


USD jumped after a strong employment report


Nonfarm Payrolls came out to be unexpectedly strong. In June, there were created 224K new jobs, against the expected 160K, eliminating fears of a sharp economy cooling. Strong data have triggered the immediate dollar purchases, strengthening it at 0.3% in less than 15 minutes, as market participants began to overestimate the chances of aggressive Fed policy easing this year.

Earlier today, the FxPro analysts warned that market expectations were too dark, and the published data could trigger a wave of the USD purchases.

The US stock indices came under pressure due to a reduction in hopes for the Fed stimulus. Stock markets have responded to data in “the worse, the better” trading style. Therefore, strong performance can trigger a long wave of stock indices correction, including SPX and DJI which recently touched the important round levels at their historic highs.

The FxPro Analyst Team

Source: FxPro

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