EUR/USD touches five-week high ahead of ECB rate decision

The EUR/USD pair has reached a five-week high after Fed Chair Jerome Powell confirmed that policy loosening is likely this year. The pair was on track to close in the green territory for a fourth consecutive trading day and edged higher to the 1.0901 level, as markets prepare for another outing from Powell on Thursday and Friday’s Nonfarm Payrolls (NFP) labour report.

Powell will be speaking again on Thursday for the second half of two-day testimony before the US Congressional House Financial Services Committee.

The US NFP jobs additions figure is expected to ease to 200K in February, down from January’s 11-month peak of 353K. Markets will be looking out for the European Central Bank’s latest rate call, due at 13:15 GMT on Thursday. The ECB is expected to leave rates unchanged for the fourth time in a row and publish fresh economic forecasts.

Pan-European Retail Sales fell less than expected for the year ended January, with a -1.0% fall compared to the forecast -1.3%. US ADP Employment Change for February came in at 140K, below the forecast 150K but still higher than the previous month’s 111K.