EUR/USD gives away gains, back below 1.0500

The now better tone around the buck has prompted EUR/USD to fade the initial spike to the vicinity of 1.0580 and return to the 1.0500 neighbourhood.

EUR/USD attention to ADP, ISM

Spot has initially climbed to fresh multi-day tops near 1.0580 following a persistent selling bias around the Dollar, especially after Wednesday’s FOMC minutes emphasized governors’ concerns over the ‘considerable uncertainty’ surrounding the potential policies under Trump’s presidency.

Later in Euroland, the ECB will publish its Accounts from the last meeting, with the bond-buying programme in the centre of the debate in light of the measures announced by the central bank back in December.

In the US, the private sector is expected to have added 170k jobs during December, while the ISM Non-manufacturing is seen to have ticked lower to 56.6 during the same period, down from November’s 57.2, all ahead of Friday’s Non-farm Payrolls (175K exp.).

EUR/USD levels to watch

The pair is now up 0.02% at 1.0490 and a breakout of 1.0575 (high Jan.5) would target 1.0654 (spike Dec.30) en route to 1.0681 (55-day sma). On the downside, the immediate support aligns at 1.0478 (20-day sma) followed by 1.0387 (low Jan.4) and finally 1.0350 (2016 low Dec.20).