On Thursday euro reached a three-week high against the US dollar, after disappointing ADP Employment data from yesterday put pressure on the greenback and market players began to focus on ECB interest rate decision later in the day.
EUR/USD pair reached 1.3126 during early European trade, highest since May 9th. Support was expected at Tuesday low, 1.3041, while resistance was to be encountered at May 9th high, 1.3176.
On Wednesday official report by ADP, stated that US private sector added fewer than projected job positions in May. According to ADP employment data, 135 000 jobs were added in May, far below the expected 165 000, while the revised number during the preceding period was 113 000. This news dimmed expectations that the Federal Reserve Bank would embark on a scale back of its easing policy later this year.
The European Central Bank (ECB) was not expected to make any changes to monetary policy at its monthly meeting on Thursday, but the bank’s post-policy meeting speech by President Mario Draghi would be in investors focus.
Meanwhile, euro remained almost unchanged versus the British pound, as EUR/GBP lowered slightly to 0.8499, down by 0.03%.
The Bank of England is expected to announce its benchmark interest rate later on Thursday, alongside the release of the official weekly report on Initial Jobless Claims in United States.