The major Friday's news is US Non-Farm Employment Change in May which was better than expected, 175K vs. forecast for 167K. Data on April was revised downwardly to 149K (which is 16K less). The unemployment rate rose 0.1% up to 7.6%, however it was due to the increase in the number of labour force which rose 420K and it is a good sign of the people looking for job. The stock market resumed the growth and the dollar reversed to the consolidation stage. It is probable that the investors decided not to forecast the probability of QE3 cut and just follow the current situation.
10-year government bonds yields rose up to 6.31%, German 10-year rose up to 1.55% (vs. 1.17% in the early May and 1.52% on Thursday), the same situation was in France (2.13%). It means that in practice investors do not expect the euro strengthens.
Today data on Japan was published. Adjusted Current Account Total in April was 0.84 trillion yen vs. estimates for 0.39 trillion yen and 0.34 trillion yen in March. Bank lending grew 0.1%. Final Gross Domestic Product was 1.0% vs. 0.9%.
At 10:45 GMT+4 Industrial Production in France in April is published (forecast 0.2% vs. -0.9%). At 12:00 GMT+4 Industrial production in Italy (forecast 0.1% vs. -0.8%). At 17:50 GMT+4 Federal Reserve Bank of St. Louis James Bullard speaks.
Technically, we expect the growth to the trend line of resistance on the H4 1.3293. If the price consolidates under the level of conjunction of trend line and Fibonacci level 23.6% on the H4 (1.3187) it is probable that decrease to the conjunction of Fibonacci levels on 1.3112 is observed, it may happen if J. Bullard announces probable QE3 trimming in the short term.