EUR/USD clings to gains near 1.0670, ECB eyed

The single currency is so far managing to keep its daily gains vs. the greenback, with EUR/USD gyrating around the 1.0670 area.

EUR/USD looks to ECB

Spot has quickly recovered the ground lost on Wednesday, coming up from lows in the 1.0630 area to retake the upper 1.0600s following the less-hawkish-than-expected FOMC minutes.

In fact, the upbeat sentiment around the buck suffered after market participants remained somewhat disappointed after the Committee failed to shed more light on the potential timing and pace of future rate hikes, while members have started to address the reduction of the balance sheet, although still without no clear directions.

Looking ahead, the ECB will publish its minutes of the March meeting later in the session. Market consensus expects the message to lean on the dovish side, especially after last week’s comments from officials, stating that markets could have overinterpreted the bank’s statement.

In the US docket, the usual report on the labour market is only due along with the speech by San Francisco Fed J.Williams (2018 voter, hawkish).

EUR/USD levels to watch

At the moment the pair is up 0.08% at 1.0673 facing the next resistance at 1.0705 (high Mar.31) seconded by 1.0728 (20-day sma) and then 1.0772 (high Mar.30). On the other hand, a breach of 1.0634 (low Apr.3) would target 1.0625 (100-day sma) and finally 1.0597 (low Mar.14).