EUR/USD parked around 1.1220, NFP on sight

The single currency is trading slightly in the positive territory at the end of the week, taking EUR/USD to a tight range around 1.1220 for the time being.

EUR/USD all the attention on payrolls

Spot is recovering some ground after yesterday’s pullback following a better sentiment around the buck. In fact, the greenback gathered extra traction on Thursday in response to auspicious prints from the ADP report (253K) and the ISM manufacturing (54.9), leaving the door open for another positive surprise at today’s releases.

Prior surveys seen the US labour market staying strong, with non-farm payrolls adding 185K jobs during last month and the unemployment rate staying put at 4.4%. Extra attention, however, should be on wage inflation pressures, as consensus sees average hourly earnings advancing 0.2% MoM.

EUR has managed to regain the 1.1200 handle and beyond after bottoming out in the 1.1100 neighbourhood on Tuesday. In the same line, the European currency stays well supported by the likeliness of some change in the ECB’s message towards a more hawkish view at its next meeting and a moderate and relentless recovery in the region.

Further support comes from the speculative community, which added further contracts to the net long position during the week ended on May 23 as per the latest CFTC report. Recall that positioning turned EUR net long for the first time after three years in the week to May 9.

EUR/USD levels to watch

At the moment, the pair is gaining 0.04% at 1.1218 and a breakout of 1.1257 (high Jun.1) would target 1.1268 (2017 high May 23) en route to 1.1300 (high Nov.9 2016). On the flip side, the immediate support lines up at 1.1165 (low May 31) followed by 1.1108 (low May 30) and finally 1.1073 (76.4% Fibo of 1.1300-1.0339).