EUR/USD reassess rebound this morning

The slide in the dollar yesterday afternoon saw the EUR/USD spike higher on the news that US CPI did not rise at all last month. That said, the markets were only looking for a headline increase of just 0.1% in May anyway. So, was it just a big deal, that prices came in just 0.1% below that forecast? Well arguably not, but it seems the market was looking for any excuse to underpin a move and that is how it played out. However, the noted and slightly more hawkish stance from the Fed boss later yesterday helped the dollar rebound and that pushed the EUR/USD back, from an earlier high at 1.0852. The EUR/USD closed in the US last night at 1.0809. It has tested the 1.0800 handle today and that level has so far defined the low this morning. The earlier high before that has been set at 1.0816. So, as you can see, the range during the Asian session has been tight. The 200 day moving average is in place this morning at 1.0790 and that could be a level of note today. The EUR/USD is currently trading at 1.0804