EUR/USD eyes 1.2470 post-ADP, daily peaks

• US ADP came in above estimates at 234K in January.
• The pair stays in daily highs around 1.2470.
• FOMC meeting now in centre stage.

The offered tone around the greenback remains unchanged despite the solid print from the ADP report, with EUR/USD firmly marching to the area of daily tops in the 1.2460/70 band.

EUR/USD now looks to Fed

The pair keeps the upside unabated so far this week, with the weakness around the US Dollar showing no signs of diminishing despite today’s ADP report saw the US private sector added 234K jobs in January, more than initially forecasted (185K).

Extra data releases in the US docket saw employment benefits up 0.50% QoQ during Q4 and the employment cost index rising 0.6% during the same period, both reading matching prior estimates.

Spot has been moving higher in spite of the upside momentum in yields of the key US-1O year benchmark, currently around 2.71%, a tad lower than yesterday’s multi-year tops in the 2.73% area.

In the meantime, market participants have shifted their focus to the upcoming FOMC meeting, where the Committee is expected to deliver a somewhat hawkish statement.

EUR/USD levels to watch

At the moment, the pair is gaining 0.51% at 1.2466 and a breakout of 1.2495 (high Jan.26) would target 1.2537 (2018 high Jan.25) en route to 1.2571 (high Dec.16 2014). On the flip side, the next support aligns at 1.2348 (10-day sma) followed by 1.2336 (low Jan.30) and finally 1.2208 (21-day sma).