Yesterday’s US dollar squeeze looks to be sapped as the euro drifts to a session low at 1.1430.
The rally in EUR/USD yesterday stalled out just shy of the pre-ECB low at 1.1542 and the pair has slid a full cent. It’s now testing the Jan 27 low.
EURUSD 15 minute chart
There were no surprises in the January ADP report and that minimizes risks for non-farm payrolls on Friday. As the dust clears, the market will be reminded that the US economy is still the strongest in the world and the Fed is the only major central bank thinking about tightening.
Analysts at BNP Paribas are out with a note saying to sell the euro at 1.1450 with a stop at 1.1650 and a target of 1.08.