The floodgates could be set to open in the euro and other US dollar trades after a hot CPI report. Inflation rose 9.1% on the year compared to 8.8% expected. The dollar has jumped across the board afterwards with the Fed funds market pricing in a 30% chance of 100 bps on July 27, up from about 3% beforehand.
So far the dollar moves have been contained by recent ranges but that could change in a big way if EUR/USD parity breaks.
