The selling bias hits the single currency and forces EUR/USD to return to the sub-1.1600 area ahead the opening bell in Euroland on Thursday. EUR/USD looks to USD, yields. Following a volatile session on Wednesday, EUR/USD managed to chart decent gains, although the absence of follow through motivate spot to slip back to the negative territory on Thursday. The pair, in the meantime, stays under pressure on the back of the decent advance in the greenback, which motivates the US Dollar Index (DXY) to regain the 94.00 barrier and beyond amidst a mixed tone in US yields.
It is worth recalling that the greenback surrendered ground on Wednesday after the Federal Reserve announced it will start tapering its bond-purchase programme later in the month at a monthly $15B, matching the broad consensus. Later, in his press conference, Chief Powell gave an upbeat assessment of the economy although he emphasized that the start of the tapering process has no links to a rates lift-off.
Later in the domestic docket, German Factory Orders and the final October Services PMI are due. In the broader euro area, September’s Producer Prices and the Services PMI are also due. Across the pond, the usual Initial Claims, Challenger Job Cuts and Balance of Trade figures are all scheduled for later in the NA session.
