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EUR/USD forecast: risk trends prevail – Commerzbank and UOB

FXStreet (Edinburgh) - The single currency is clinging to the 1.0900 handle early morning in Europe amidst an empty docket in Euroland and markets biased towards the risk-on trade.

“As pointed out yesterday, we were not convinced the sharp drop last Friday is the start of a sustained down-move. The rapid recovery yesterday reinforces our current neutral view. Only a daily closing below 1.0775 would indicate the start of bearish phase”, suggested the research team at UOB Group.

Axel Rudolph, Senior Technical Analyst at Commerzbank, commented “Last week’s EUR/USD failure at 1.0968 has reinforced resistance there but the market is essentially side lined. In order to trigger a move on the downside we need to erode the 1.0776/11 January lows. Intraday Elliott counts are suggest another upside attempt but this should not extend beyond 1.1000/60”.

Eurozone unemployment and Fed’s George in focus today – Danske Bank

Research Team at Danske Bank, suggest that Euro area unemployment figures for December will be released today.
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US: Private payroll growth likely slowed in January – SocGen

Research Team at Societe Generae, suggests that despite its admittedly spotty record in forecasting the Bureau of Labor Statistics’ private payroll series, the ADP National Employment Report may still impact expectations heading into the official government release.
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