The U.S. markets on Friday remained closed for the Independence Day Holiday. After the latest employment reports in the U.S. increased the expectations for higher interest rates, the U.S. dollar stabilized.
Last Thursday, the U.S. Labor Department stated that the economy for the month of June added 223,000 jobs, much less than the expectations for 230,000. The hourly earnings’ growth missed the growth expectations for a 0.2% rise and remained flat in June.
Furthermore, the USD/JPY pair reached the 122.78 level in late trading, having dropped 0.24%, whilst the EUR/USD escalated to 1.1110 having performed a rise of 0.24%, whilst staying flat at 136.44 versus the yen.
In addition, as traders and investors focused mostly on Greece’s weekend referendum as to whether the nation will reject or accept the bailout terms, the major currencies stabilized within their recent ranges.
The International Monetary Fund on Thursday stated that Greece will not be financially sustainable unless there is a write off of debt to keep the economy afloat, as well a further €50 billion for the upcoming three years to maintain the nation’s stability.
Further on, Alexis Tsipras, the Greek Prime Minister, said that a ‘’No’’ vote against the proposals would give him the advantage to negotiate for better terms with his nation’s creditors.
This week, investors and traders will focus on the impact that the Sunday’s referendum outcome could have on the European economies, as well on the scenarios that Greece could exit the euro zone.
Moreover, apart from Greece’s aid talks, traders and investors will pay a lot of attention on the Federal Reserve’s minutes as well as the central bank meetings in the U.K and Australia.