EUR/USD near 1.0900 on downbeat US CPI

EUR/USD leapt to the area of daily tops around the 1.0900 handle following disappointing results from the US docket.

EUR/USD bid after US data

The pair met extra buying pressure after US inflation figures tracked by the CPI rose at an annualized 2.2% and 0.2% inter-month vs. forecasts at 2.3% and 0.2%, respectively.

Further data saw Core CPI rising 1.9% YoY (vs. 2.0% exp.) and 0.1% on a monthly basis (vs. 0.2% exp.).

In addition, headline Retail Sales expanded 0.4% in April, while Sales excluding the Autos sector rose 0.3% MoM.

Spot has turned positive for the day in the wake of the lacklustre results from the US docket, reverting four consecutive sessions with losses.

Later in the NA session, the advanced gauge of May’s Consumer Sentiment is due along with speeches by Chicago Fed C.Evans (voter, centrist) and Dallas Fed P.Harker (voter, hawkish).

EUR/USD levels to watch

At the moment, the pair is advancing 0.28% at 1.0892 and a break above 1.0900 (high May 10) would target 1.0916 (23.6% Fibo of the April-May rally) en route to 1.0935 (high May 9). On the flip side, the next support aligns at 1.0838 (low May 11) seconded by 1.0826 (200-day sma) and finally 1.0819 (low Apr.24).