The major European indices are all closing with sharp declines dragged down by the higher than expected US CPI data and tumbling US stocks.
- German DAX, -1.55%
- France's -1.33%
- UK's FTSE 100 -1.10%
- Spain's Ibex -1.5%
- Italy's FTSE MIB -1.2%
Looking at the benchmark 10 year yields:
- Germany 1.724%, +7.7 basis points
- France 2.287%, +5.5 basis points
- UK 3.154%, +8.4 basis points
- Spain 2.56%, +2.0 basis point
- Italy 3.987%, +4.3 basis points
IN the forex, the EURUSD is trading down to a new session low as London/European traders look to exit.
In the process, the pair is testing its 200 hour moving average at 0.99979 and the price is dipping below the parity level. A move below the 200 hour moving average would open the door for further declines with the 0.99515 level being the next level to target. That was the July 14 low (and low for the year at the time - not in chart below)). Admittedly the price has traded above and below that level in the up and down trading that has stalled price action. Nevertheless, it is a target that traders should focus.
