Well that was fun. The market got itself a bit lathered this morning ahead of Earning and data but now that we’ve absorbed the news, it is time to go the other way…at least for ten minutes or so.
The PPI data turned out to be more important than forecast as it ramped even higher than expected last month. The big decline in oil prices since then (down $15 from the highs) should correct most of that in the months ahead.
The next few hours will be the battle of the intraday positions. Longs who are stranded above 1.40 in EUR/USD will be looking for rallies to get back to flat whole intraday shorts will try and press the downside and target stops in the 1.3940 area.