After 48 hours of correction, the euro ended the day on the highs once again as it recaptured the 1.1900 level. Not even jawboning by the ECB could keep the single currency down for long. Yet the strength today wasn’t really a function of euro buyers, but dollar sellers as the market went once again to hating the greenback.
Despite relatively decent data, traders continue to doubt Fed’s intention to hike rates by year end. Today’s lackluster PCE data which showed no inflation whatsoever did little to dispell that negative sentiment and if tomorrow’s NFP’s miss its mark the pile on against the buck will only get deeper which means that EUR/USD has a decent chance of climbing the 1.2000 level once again.