EUR/USD jumps above 1.06 as the Treasury yields drop
The dollar has been on the slide over the past 12 hours and has reversed most of the gains that it had managed to make since the beginning of the week. Though we had anticipated the dollar to begin to reverse after a few days, this reversal which has come in so early and that too based on some primarily decent data should be a large worry for the dollar bulls. As a result of this, the EUR USD rose by over 100 pips and trades above 1.0600 as of this writing and it continues to look strong for more.
Yesterday saw the release of a host of data from the US, the most important of them being the CPI data and the retail sales data. The overall data was very positive for the US with the retail sales coming in at 0.4% against the expected value of 0.1%. But, even though the CPI data overall came in stronger than expected, the wages came in at 0.6% and this made the wage growth YoY as 0.0%.
Looking ahead to today, we do not have any major economic news from the eurozone for the day but we have the Unemployment Claims data and the Philly Fed Manufacturing Index data from the US. We do not expect much volatility surrounding these data and so we expect the EUR USD pair to consolidate today with a bullish bias.