We are seeing some additional volatility as the Friday progresses closer toward the London/European close.
The Michigan preliminary consumer confidence report through a monkeywrench into the markets. Inflation expectations with higher. The index was also higher.
As a result we are now seeing the 10 year yield move back toward the 4.00% level. Yesterday peaked at 4.08%. The low yield today reached 3.85%.
US stocks have rotated back to the downside.
- Dow industrial average -175 points or -0.59% at 29862
- S&P index -48 points or -1.31% at 3621
- NASDAQ index -183 points or -1.71% at 10466
The USD is moving higher and is now the strongest of the major currencies.
The GBPUSD is the biggerst mover. The USD is up 1.30% vs. the GBP and near 1% vs. the AUD. The USDJPY is up 0.77% as it reaches the highest levels going back to 1990. The USDJPY is trading at its highs at 148.36 as I type.
The GBPUSD (see chart below) has not reacted positively to the UK political moves. The GBPUSD is trading back below its 200 hour moving average at 1.1189. The 100 hour moving average comes in at 1.11191 and would be the next downside target. Yesterday, the price low bottom near the that moving average level (and the 38.2% of the move up from the September low). Traders will be watching the 1.12109 to 1.1244 area as resistance now. Stay below is more bearish..
