It comes as bond yields are also nudging higher with 10-year yields now to 4.39% on the day. In turn, USD/JPY is moving back up to 155.95 and EUR/USD is down 0.2% to 1.0840. While the former has already erased its CPI drop, the latter is starting to get there alongside other dollar pairs as well.

EURUSD H1 17-05
EUR/USD hourly chart

For today, EUR/USD has some large option expiries at 1.0850 that could hold price action a bit more before rolling off. But from a technical perspective, the 100-hour moving average (red line) at 1.0833 is now a point of interest.

Elsewhere, GBP/USD is also down 0.2% to 1.2645 and AUD/USD down 0.4% to 0.6650 on the day. The latter is also seeing a similar retreat to EUR/USD with its own 100-hour moving average at 0.6645 currently.

As yields rebound, we're also seeing traders pare back Fed rate cut odds slightly. After the CPI data, the total rate cuts priced in for the year was around 51 bps. Currently, we're seeing that fall back to roughly 46 bps on the day.