EUR/USD is consolidating losses just above 1.3000 after a few modest probes below that level this morning. Soft oil prices are the latest catalyst for USD strength as they help cut the US's imports significantly. Dealers are reluctant to push EUR/USD aggressively lower, however, mindful of the bounce yesterday from the 1.3970/80 region whether central bank bids were in evidence.
The market continues to buy dips, leaning on the central bank bids for support. If a rebound does not materialize in the next day or two, further downside looks in the cards, however. Supporting the buck near-term was an upbeat IBD/TIPP consumer sentiment report. The index rose to 53.7, its second highest since March 2005, according to Investors Business Daily.
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