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European markets flat ahead of US Non Farm data

European markets are trading mixed ahead of the most watched data on this planet- the US non farm payroll number. Yes, the concerns about Greece  are still very much in focus and any headline on this topic is making a major move in the market but unfortunately, this saga may very well continue for a few more weeks until or unless we find a solution for this. 

However, there is some optimism for traders which is in the form of higher oil prices. The WTI is  trading above 50 level and we think the new trading range could be between 45 to 55. 

Back in the US, the forecast for today’s US non farm payroll number is for 234K. The previous number was for 252K. However, we will not be surprised if we miss the forecast number for today as most of other economic data so far this week has suggested a lower reading. The unemployment rate could stay at the 5.5 percent and the wage growth may see a slight bounce and could print the number of 0.4%. But, overall, the U.S. firms are expecting the wage growth to increase during the 2015 and are expecting this number to cross the 1.7 percent figure of the last year. Although, they are expecting the figure to grow but it is still relatively much lower if you compare the figure of 3-4 percent. 

 If we do get a lower reading, this means that the dollar could take a nose dive as this may press the expectations that the rates may not be going up any time sooner. However, a strong reading could take the dollar higher against major currencies and could also move the equity markets lower as investors will become more concerned about the strength of the dollar which is impacting the earnings of the US companies.



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