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Forex: EUR/USD erases gains, quieter at 1.3100 ahead of US NFP

The EUR/USD retraced its European morning rise to 1.3134, erasing its daily gains completely and currently testing the 1.3100 mark ahead of the US session and the release of US NFP data for February, where consensus points to +160K added jobs, slightly higher than January's pace of +157K. NFP data has been printing actual figures above consensus regularly.

“As for today’s weekly LTRO repayment announcement, the ECB announced that 35 banks are repaying a total of €4.23bn on 13 March, which was probably a bit lower than what was expected, and certainly lower than last week’s €12.5bn total”, wrote TD Securities analysts.

Industrial production data in Germany was unchanged on the month of January (0.0% vs 0.5% expected) and YoY data fell a little more than expected, from -0.5% (revised from -1.0%) to -1.3% (consensus of -1.2%). “The details showed that manufacturing came in at –0.2%, and it was a stronger result for construction (+3.0%) that prevented headline IP from contracting”, TD Securities analysts added.

"Yesterday's break through 1.3075 signals, that a "double bottom" formation is in place at 1.2960 and my outlook here is bullish, for a rise towards 1.3165”, wrote Deltastock.com analyst Stoyan Mihaylov, pointing to a clear break above the mentioned resistance to set the focus at the next important area around 1.3320. “Initial intraday support is projected at 1.3075 and crucial on the downside is 1.3040”, he added.

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