It’s back to the future in FX world today. Good news is good news for a change. EUR/USD rallied as high as 1.4414 after the data but has shed over a cent in the last 10 minutes. EUR/USD fell as far as 1.4307 on the pullback.
Traders are beginning to bet the Fed will begin to pull in the liquidity reins which would be an important boost to the dollar, if and when it comes. My guess it will not be soon.Nonetheless, the 10-year Treasury note is 11 bp higher in yield.
EUR/USD trades now at 1.4332.
