EUR/USD started the month at 0.9883 and is on track to finish at 1.0418. That 5.5% gain will mark the best month for the euro against the US dollar since 2010.
Of course that comes after a long-term decline from 1.23 of near-constant selling. The sharp turnaround indicates are market that was far too crowded with US dollar longs. In addition, a surprisingly soft US CPI report and a warm European weather easing the energy crisis were big helps.
Technically, for now this looks like a retest of the 2015-2017 lows and the breakdown from there. If the US dollar can firm from here that will be further cemented but right now the market is focused on the Fed pivot. What has me slightly worried for the euro is the cold weather that's set to blow in this weekend.
