• EUR/USD picks up some upside traction and revisits 1.0560.
• The dollar appears mildly offered ahead of Friday’s Payrolls.
• Weekly US Initial Claims will be the only release of note on Thursday.

The combination of some profit taking in the greenback and bargain hunters breath in some life to EUR/USD and lift it to the 1.0565/70 band on Thursday.

EUR/USD cautious ahead of US NFP

EUR/USD trades with decent gains near 1.0570 and leaves behind two consecutive daily pullbacks, including a drop to 2-month lows near 1.0520 on Wednesday.

The so far recovery in the pair comes amidst the moderate pullback in the dollar, which appears propped up at the same time by some lack of traction in US yields, all against the backdrop of rising cautiousness among traders ahead of the release of US Non-farm Payrolls on Friday.

In the meantime, firmer conviction of a 50 bps rate hike by the Fed at its March gathering continue to support the recent solid bounce in the greenback, while speculation that the ECB could extend its hiking cycle beyond the March meeting has so far failed to lent lasting legs to the European currency.

Nothing scheduled data wise in the old continent should leave all the attention to the usual weekly Initial Claims across the pond.