EURUSD up to 1.1144 from a low of 1.1080
The US dollar peaked shortly after retail sales and now sellers have taken control. The euro is leading the way as it wipes out all the losses from European trading.
EURUSD intraday
The Aussie is also a standout in the past two hours while cable continues to wallow.
At some point I expect the US dollar to strengthen as the worry about China fades and the market begins to refocus on the likelihood of a Fed hike in September. At the moment the bond market is pricing in just a 30% chance of a hike while a WSJ survey just released shows 82% of economists are predicting a hike. That's an extremely wide divergence.
