EUR/USD consolidates following dynamic rise towards 1.09

Yesterday the charge higher in the EUR/USD was all about the dollar and the reaction to the lower than forecast US CPI data. That delivered a breakout to as high as 1.0887 and once that 1.0760 level gave way there was no stopping it. The EUR/USD later posted a US close at 1.0879. It was also noted here; that many are now calling for a move to 1.10 and given the dynamic move seen yesterday that would appear to be a far less remote prospect than it was just a few days back. There is clear evidence of a capitulation of dollar longs at play here too. As also noted here yesterday, momentum in the US currency had stalled and it was failing to make progress for too long. So, the reaction to the mere 0.1% drop in core US prices would seem harsh for the dollar and perhaps it was, but we can surely blame the lack of traction beforehand for that. So, the EUR/USD has remained elevated so far today, but as yet it has not made any further progress above 1.09. The range seen so far today has been covered by 1.0866 to 1.0884 and this looks like consolidation, after what was a very dynamic shift in the price action yesterday. The EUR/USD is currently trading at 1.0869