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Forex pairs in this Article » EUR/USD (Edinburgh) - The single currency is side-lining around 1.2890 on Friday, ahead of the US Payrolls due later. Previous estimates expect the NFP to come in at 165K in June vs. 175K in the previous month. A result above forecasts could accelerate the decline in the par, already punished by the new ECB’s forward guidance.

After Thursday’s sharp pullback, Karen Jones, Head of FICC Technical Analyst at Commerzbank, suggested, “The market has eroded its 55 week ma and uptrend and this does leave it vulnerable on the downside. Below 1.2740 we target 1.2661 November low en route to the 1.2050 200 MONTH ma”.

“As the size of the ECB's balance sheet continues to decline, we expect to see further policy announcements from the ECB… Bottom line for us, while the 1.2750/1.2850 area marks an important band of support for the EUR, we see Thursday's decision as an important driver for FX markets. Assuming we do get further tapering guidance from the Fed in the weeks ahead, we fully expect these levels to give way”, commented Rob Rennie Strategist at Westpac.
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