The single currency alternates gains with losses amidst a narrow trading range vs. the dollar and motivates EUR/USD to keep business near the 1.0900 region on Thursday.

EUR/USD appears cautious ahead of Friday’s NFP

Following Wednesday’s sharp drop, EUR/USD now attempts some stabilization in the 1.0900 neighbourhood amidst the generalized prudent stance in the global markets and an equally flattish mood around the dollar.

Market participants, in the meantime, keep the cautious stance ahead of the release of the key US Nonfarm Payrolls on Friday ( 240K exp.), while expectations for a 25 bps rate hike by the ECB and a pause at the Fed’s meeting in May appear unchanged for the time being.

In the domestic calendar, Germany’s Construction PMI dropped to 42.9 in March, while the same gauge in the broader Euroland eased to 45.0. Earlier in the session, Industrial Production in Germany expanded at a healthy 2.0% MoM in February.

In the US, the only release of note will be the usual weekly Initial Claims.