Pros and cons of EUR/USD from macroeconomic perspectives

When we gaze at the commentaries from Fed's chairperson Yellen, and from top notch companies in the US, the dollar's rally during the Q1 of 2015 here a concern and even a pessimistic approach for a lot of US companies were observed, especially the multinational companies doing business overseas.

However, the US economy and dollar is still relatively stronger shape on historical basis. You also have commodities (including gold) falling down, how will that affect necessarily the inflation mandate that could be related to the rate hike. The Employment Cost Index (ECI) for all civilian workers - the BLS' broadest measure of worker compensation - likely climbed by 0.7% over the three months ending in June. Wage and salary growth likely slowed whilst benefit costs are expected to pick up the slack. Our projections would place the ECI 2.5% above its year-ago level.

We continue to see commodities fall down and we would forese this is definitely not good for dollar in a longer run and those commodities have historically been an inflation hedge. So, these are sort of additional dynamics. Companies will have to face during the next couple of quarters of earnings and also it could be a contributor to the decision of just how soon the Fed will increase rates. This could be luring for speculators as the mixed bag of macro numbers are flashing on euro side  with EURUSD tp perceive high implied volatility. CPI YoY estimates are in line with the forecasts at 0.2%, while euro area unemployment claims remain unchanged which is as per forecasts again. With Greece debt issue cooling off euro began to find its strength.