EUR/USD pops to daily highs near 1.1840 on disappointing US CPI

EUR/USD climbs to fresh tops around 1.1840 on Tuesday.
German 10-year Bunds yields remain capped around -0.30%.
US CPI came in short of expectations in August.

Pablo Piovano FXStreet

The knee-jerk in the dollar now pushes EUR/USD to new highs in the 1.1840 region on Tuesday.

EUR/USD stronger on US data

EUR/USD climbs further and reaches tops around 1.1840 after the greenback lost further ground in the wake of the release of US inflation figures for the month of August.

In fact, US consumer prices tracked by the headline CPI rose 0.3% MoM and 5.3% YoY, while core prices (excluding food and energy costs) rose 0.1% MoM and 4.0% over the last twelve months, all prints surprising to the downside.

In the bonds market, yields of the German 10-year Bund correct lower after hittig fresh highs in the -0.30% earlier in the session, while yields of the US 10-year note recede to 1.32% and to sub-0.21% levels when comes to the 2-year note.

EUR/USD levels to watch

So far, spot is gaining 0.26% at 1.1841 and faces the next up barrier at 1.1909 (monthly high Sep.3) followed by 1.1935 (100-day SMA) and finally 1.2000 (psychological level). On the other hand, a break below 1.1770 (weekly low Sep.13) would target 1.1704 (monthly low Mar.31) en route to 1.1663 (2021 low Aug.20).

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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