The dollar is losing reasons to remain upbeat
All in context, the dollar is looking dodgy again. USDJPY looks to be struggling to make another dent in 113.50 but is finding support around 113.25.
EURUSD has strolled back up towards 1.0700 since the US CPI data. We'll have to see whether it's got the gumption for a move back above 1.0700. The failure to do so yesterday and today was telling but the dip buyers weren't too far away and buying commenced a few pips ahead of 1.0650.
EURUSD 15m chart
Cable has taken itself back into 1.2300 and now faces resistance around 1.2340/50.
We're not talking massive moves here at all but the theme of late has been USD weakness when the data hasn't given anything to get bullish about. That might be the case again today but that might also depend on Treasuries. 10's topped out at 2.38% after CPI, and are back down to 2.36% now. The data might not be bullish for the buck because it was expected but inflation is now at 2.1% and that's something the market will be factoring in going forward.
