Euro retreats versus dollar after U.S. data, ECB meeting eyed

The EURUSD slipped on Wednesday after strong U.S. economic data bolstered the dollar, ahead of the awaited ECB monetary decision on Thursday.

U.S. private sector employers added 212,000 jobs in February from an upwardly revised of 250,000, while the services sector signaled a widening expansion to 57.1 in February from 54.2 in January.  

The data added to confidence over the health of the world’s biggest economy ahead of the awaited non-farm payrolls data due on Friday that may show American employers added 240,000 jobs last month.

The euro will probably remain vulnerable until the ECB press conference tomorrow, which will provide details about the ECB’s plan to purchase €1.1tn-worth of euro-area government bonds to tame inflation.

Data released this week showed that eurozone consumer prices were 0.3 percent lower last month, which far below the banks’ target of close to 2 percent.

In addition, the ECB meeting will give an update about the economic conditions in the 18-nation region, while will decide on whether to maintain emergency loans for struggling Greek banks.

Meanwhile, the EURUSD is trading around 1.1070, where the session’s low was hit at 1.1060 and the high was touched at 1.1184.