FXStreet (Edinburgh) - The biggest event in the FX markets is once again upon us: the US Non-farm Payrolls for the month of May is due in the European evening, with consensus hovering over 220K.

In a context where falling US yields are hurting the greenback, the EUR/USD found itself well supported despite the current bearishness around the single currency. Today’s consensus for a softer print around 220K (or lower) would add further selling pressure to the USD, and thus extending the EUR recovery from recent troughs near 1.3500 the figure post-ECB announcements.

In fact, the recent disappointing result from the ADP report helps traders infer a lower reading in May’s Payrolls, although the low correlation between them would not take this for granted.

Should spot move higher, 1.3670 (high June 5th) comes in as the interim hurdle ahead of the psychological barrier at 1.3700. On an unlikely upside surprise from the labour report, recent lows at 1.3506 (low June 5th) followed by 2014 low at 1.3476 would be the first stops southwards.

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