EUR/USD: Waiting for NFP on Friday

The EUR/USD pair witnessed some profit-taking on Wednesday and extended the previous day's late pullback from two-month tops. As investors digested the Fed's surprise rate cut, the greenback found support in stronger-than-expected US macro releases.

Key quotes

“The latest ADP report showed that the US private-sector employers added 183K jobs in February as compared to 170K expected while the US ISM Non-Manufacturing PMI unexpectedly rose to 57.3 in February – representing the highest level since February 2019.”

“The data helped ease growing market concerns as was evident from a goodish bounce in the US Treasury bond yields from record lows, which remained supportive of the bid tone surrounding the buck.”

“In absence of any major market-moving economic releases, either from the Eurozone or the US, the USD price dynamics might continue to act as an exclusive driver of the pair's momentum.”

“Some repositioning trade ahead of Friday's key data risk – the closely watched US monthly jobs report – popularly known as NFP – might produce some trading opportunities on Thursday.”