EUR/USD leaps to 4-day tops near 1.1250 on US CPI

The demand for the single currency met extra upside pressure today following poor results from the US docket, lifting EUR/USD to fresh tops near 1.1250.

EUR/USD bid after data, focus on FOMC

Spot quickly climbed to fresh daily highs near 1.1260 after US inflation figures tracked by the CPI showed consumer prices rose less than expected during last month.

In fact, the CPI dropped 0.1% inter-month and 1.7% on an annualized basis vs. forecasts at 0.0% and 2,0%, respectively. Prices stripping food and energy costs rose 0.1% MoM and 1.7% on a year to May.

Further data saw headline retail sales dropping 0.3% on a monthly basis in May, while sales excluding the Autos sector also contracted at a monthly 0.3%.

Later in the session, the USD should stay in centre stage in light of the FOMC interest rate decision, with consensus expecting a 25 bp hike.

EUR/USD levels to watch

At the moment, the pair is up 0.36% at 1.1250 and a break above 1.1284 (2017 high Jun.5) would pave the way for a test of 1.1300 (high Nov.9). On the flip side, the immediate support emerges at 1.1165 (low Jun.9) followed by 1.1108 (low May 30) and finally 1.1073 (76.4% Fibo of 1.1300-1.0339).