EUR/USD: Why Any Bearish Takeover Is Set To Be Temporary, Levels To Watch

What could push the Fed into more action? In the immediate term, the answer depends on the job market. ADP’s labor figures disappointed with a loss of 123,000 positions, contrary to an increase that was expected.

Will Friday’s official Nonfarm Payrolls also show a squeeze in hiring? That remains an open question, but bad news for American workers could turn into good news for dollar bears on expectations for Fed action.

Thursday’s economic calendar features jobless claims for the last week of 2020 and the ISM Services Purchasing Managers’ Index for December – a hint for the NFP. Devastating figures could boost EUR/USD, but there is a higher chance it would happen on Friday.

Politics have somewhat overshadowed the pandemic that is raging on both sides of the Atlantic. COVID-19 cases, deaths on hospitalizations continue rising – with the US setting new highs on admissions.

In Europe, politicians are under pressure to accelerate the pace of vaccinations, which has been frustratingly slow. The European Medicines Agency (EMA) approved Moderna’s jabs, but evidence of a concerted effort to vaccinate the population are still to be seen.

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