EUR/USD eases to 1.2450, USD stays bid

• US Dollar extends gains on Monday.
• Spot found decent support near 1.2400.
• Sentix, Draghi, US ISM non-manufacturing next on tap.

The buying interest around the greenback remains well and sound at the beginning of the week and is now prompting EUR/USD to ease a tad to the mid-1.2400s.

EUR/USD looks to data, Draghi

Spot is alternating gains with losses on Monday as market participants continue to digest Friday’s US non-farm payrolls. It is worth recalling that the US economy added 200K jobs during January, more than initially estimated, while ‘wage-inflation’ surprised to the upside.

In the meantime, the sell-off in the money markets remains in place, pushing yields of the US 10-year note just shy of the 2.90% level, adding some extra support to the greenback and thus weighing on the pair.

Event-wise today, BuBa’s J.Weidmann is due to speak ahead of President M.Draghi. On the data front, EMU’s services PMI, retail sales and the Sentix index are all due ahead of US ISM non-manufacturing.

EUR/USD levels to watch

At the moment, the pair is losing 0.03% at 1.2452 facing the immediate support at 1.2410 (low Feb.5) followed by 1.2336 (low Jan.30) and finally 1.2269 (21-day sma). On the other hand, a breakout of 1.2522 (high Feb.2) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014).