The data released on Friday showed that the European economy continues to weaken, while the situation in the United States is better than what many experts expected.

Thus, orders in the manufacturing sector of Germany in May decreased more than expected, and this is not surprising given the signs of a slowdown in the global economy, as well as trade conflicts that seriously affect the manufacturing sector of developed countries.

According to the data of the Ministry of Economics in Germany, orders in the manufacturing sector in May of this year decreased by 2.2% compared in April, whereas compared with the same period of the previous year, the decline was 8.6%. Economists predicted that in May, orders will decline only by 0.3% compared with the previous month.

It is expected that the main reduction was observed in the external market, where orders fell immediately by 4.3%, while the domestic market showed an increase of 0.7%.

As I noted above, a good report that US employers increased jobs in June of this year led to a weakening of fears associated with serious problems in the economy. In turn, this retains hope for a stronger US GDP growth in the 2nd quarter of this year, and also reduces the likelihood of two immediately lower interest rates this year. Some economists even expected that the Fed could go for a change in monetary policy in the next meeting.

According to a report by the US Department of Labor, the number of non-agricultural jobs increased by 224,000 in June, while economists had a forecast of increase in jobs amounting to 165,000. The unemployment rate rose only slightly to 3.7%.

The wage growth of 3.1% compared with June 2018 also maintains positive forecasts for further growth in the American economy. A good report on employment in the United States led to an outflow of cash from treasury bonds, the yield on which jumped up.

As for the technical picture of the EURUSD pair, large support is currently located in the area of 1.1205. The breakthrough of which will provide a further bearish trend by new sellers whose goal will be minimums in the 1.1160 and 1.1110 areas. If the bulls try to correct the situation, then the upward correction will be limited by large resistance in the area of 1.1260, where the upper limit of the downward channel passes.

The Canadian dollar fell against the US dollar, but then managed to regain some of the positions, even though unemployment in Canada increased in June 2019 and the number of jobs remained almost unchanged.

According to the National Bureau of Statistics of Canada, the number of jobs decreased by only 2,200 in June of this year, while economists had expected that the number of jobs in June, on the contrary, increased by 9,900. Unemployment in June was 5.5%, which coincided with forecasts after a minimum of 5.4%, which was recorded last month.

The sharp rise in wages in June of this year kept the bull trend for the Canadian dollar. Thus, the average hourly earnings in June rose by 3.8% against a growth of 2.8% in May, which will support the Canadian economy in the 2nd quarter of this year.