Recent Profits Booked

We were caught by surprise by yesterday's consolidation.  The EUR/USD broke through our minor support area, but still held above major support at 1.2750.  With that being the case we are still inclined to go long and test 1.2917.

We also have event risk added to the picture today.  The US PPI will be released at 13:30 GMT. The consensus view is for a rebound to -0.5% from the previous month totals. In addition, US retail sales will be released this morning.  No change from previous numbers is expected.  Any deviation from the expected in either of these numbers will move the market.