TD are looking to sell EUR/USD around current spot, saying the first 'fade level they see is 1.1750.
- And support at 1.1700.
- The USD got hit on a softer core m/m print (despite matching expectations on the core y/y measure), perhaps helping to reduce 'normalization' bets on the Fed.
- This is most important for EUR/USD as it was pressing into key support at 1.17
- While the market may view this as relief on the inflation front, it's not likely to really shift the balance of risk for the USD beyond intraday noise. We reckon that dips in the USD will fade as payrolls matter more for the taper discussion than what is a well-known story of 'transitory' inflation pressures peaking