Forex: EUR/USD gets ready for US ISM non-manufacturing

Although not quite the biggest event on the weekly calendar, the US ISM non-manufacturing index is the last significant piece of data today. So, the EUR/USD is acting accordingly, already at 1.3050 and eyeing a possible return to the daily high of 1.3076.

The ISM non-manufacturing is expected to ease its expansionary pace from 55.2 to 55.0 in February. “We see slight downside risks and are looking for 54.2, but markets may focus on the employment sub-index more than the headline itself, with nonfarm payrolls coming up on Friday”, wrote TD Securities analysts.

Just released was US Redbook index, pointing to a slight drop from 1.4% to 1.3% (MoM) and from 2.7% to 2.2% (YoY) in the week ending at February 24.

More important to investors' eyes will be the ECB meeting on Thursday and US nonfarm payrolls on Friday.

UBS analysts are bearish on the EURUSD: “A closing break below 1.2997 would be an important bearish development, exposing 1.2877”, wrote analyst Gareth Berry, pointing to resistance is at 1.3162.