Markets Contained Despite Poor US Data

The single currency gave up early gains, settling lower against against the greenback despite Bloomberg reports citing sources in saying the ECB see no need for drastic action government bond yields at these levels. EUR/USD showed above 1.21 in the initial reaction, but faded swiftly into the London close.

• The greenback generally traded well, with the USD index in minor positive territory - but yesterday's highs contained, providing markets with few new directional signals.
• Both the ISM Services Index and ADP Employment Change came in slightly below forecast, heightening focus on Friday's jobs report, in which markets expect 200k jobs to have been added across the month.
• Focus Thursday turns to weekly US jobless claims & factory orders and Australian trade balance for January. Central bank speak again takes focus, with RBA's Kearns, ECB's Knot & Centeno and Fed Chair Powell.