As Greece/creditor negotiations hog the headlines it is worth keeping in mind that we have US non-farm payrolls report next week.
This will be released on Thursday, a day early due to the Independence Day holiday on Friday.
The ongoing Greek crisis, quarter-end and a likely holiday shortened week will mean that illiquidity will be a big issue next week.
Currently Reuters consensus sees a NFP print of 220k and follows a gain of 262k for May. A strong employment report would help to keep alive expectations of a Sept hike which is currently only priced with a 50% probability. It would also increase the focus on the July meeting as well as Fed speakers heading into the next FOMC meeting. The most significant of these speakers will be Fed Chair Janet Yellen who will testify before the House Financial Services Committee on July 15.
We have looked to pay 1y1y GBP as a means of playing a more hawkish Fed impacting market expectations on the timing of liftoff from the BoE.
