Greece remained in the spotlight most of the week as the impasse between creditors and the insolvent nation continue to drag on. The country decided to defer payment to the IMF, opting instead of bundle IMF payments worth $1.70 billion due for the entire month of June to buy extra time. After rejecting the reform proposal from creditors outright, the Eurogroup has set today as a deadline for accepting the proposals or offering new initiatives. Aside from Greece, payroll numbers played a dominant role in momentum with the number coming in at a blistering 280,000 jobs added versus consensus estimates of 225,000. The unemployment rate rose modestly to 5.5%, however, the gains in the dollar were sharp and swift as traders anticipate an earlier date for interest rate hikes. In other economic data, the Bank of England, European Central Bank, and Reserve Bank of Australia all voted to keep monetary policy measures on hold. ECB President Mario Draghi warned on volatility just as the summer trading months begin, with panic ensuing in the days subsequent to his comments.
Payrolls Signal Rate Hikes Sooner
Weekly Report - 08/06/2015