The EURUSD has been showing resilience this afternoon, trading around 1.3650 after ADP Employment Change for February came out as expected at -20k. The January figure was revised lower to -60k from -22k. The markets were anticipating a highly skewed number given that the U.S. has been experiencing very cold weather lately. In Greece, the government, which is under heavy pressure from the EU, announced a 4.8 billion Euro austerity program aimed at regaining market confidence in the government's fiscal discipline ahead of a critical round of sovereign bond offerings. The program involves cutting public sector salaries and increasing VAT to 21 percent, but questions still remain as whether it will be enough. The guarded reaction so far suggests that the jury is still out. Meanwhile EURUSD is still below its intra-day high at 1.3670, but market rumor says big banks are buying on dips. Downside resistance is at 1.3590, as we approach the ISM Non-manufacturing release.
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