Up then down on CPI
The US CPI came in a little lower on the MoM but the core ticked to 1.8% from 1.7%. The wage component rose by 2.2% vs 2.6% (see post here). So that was not that hot.
The EURUSD initial reaction was higher, but the price quickly reversed. It looked as if sellers were ready to sell a rally. The pair is just below the 50% retracement line from the April high to the April low. That level comes in at 1.0777. Traders will need a move above that line (and stay above) to take back more control. The close from yesterday came in at 1.0760. The low is 1.0767 so far. A break of that level should signal more downside.
