EUR/USD squeezes closer to 1.10 ahead of US CPI release

Earlier today the EUR/USD dropped back slightly, towards 1.0950. The low seen was set at 1.0959. However, since then the Euro has pushed higher again and just now it hit a fresh session high at 1.0990. The squeeze higher in the Euro smacks of a potential stop hunt ahead of the CPI data, due out at 1.30pm GMT. Of course I cannot confirm there are stops in place above 1.10 right now, but at the same time, it would not surprise me if there were. Of course no interbank trader wants to cover stops into a release that could deliver a sharp spike in either direction once the data is revealed. At the same time, there is no guarantee this CPI data will deliver a surprise, but that is always the potential on any important number like this one today. The EUR/USD is currently trading at 1.0984