Better CPI data sends dollar lower. Stocks higher. Yields lower.

The lower than expected CPI sets the Fed playbook up for end to the tightening earlier in 2023 (for now). That has the risk assets up.

The Dow is up 835 points now. The Nasdaq is up a whooping 513 points. THe S&P is up 125 points

IN the US debt market, the 2 year is down -17 bps. The 10 year is down 15.7 bps.

The Fed pricing shows 50BPs. The terminal is 4.87% vs 4.98% prior to the report.

In the forex:

• EURUSD EUR/USD The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be The EUR/USD is the currency pair encompassing the European Union’s single currency, the euro (symbol €, code EUR), and the dollar of the United States (symbol $, code USD). The pair’s rate indicates how many euros are needed in order to purchase one dollar. For example, when the EUR/USD is trading at 1.2, it means 1 euro is equivalent to 1.2 dollars. Why the EUR/USD is the Most Popular Trading PairCompared to all tradable currencies, the euro (EUR) is the world’s second most traded currency, be Read this Term: THe EURUSD has moved up to test the next topside swing area between 1.06156 to 1.06407. The high price reached 1.0648 so far and has backed off a bit. It currently trades at 1.0628. A move above would have traders targeting the 61.8% retracement of the 2022 range at 1.07468.

• USDJPY: The USDJPY USD/JPY The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting The USD/JPY is the currency pair encompassing the dollar of the United States of America (symbol $, code USD), and the Japanese yen of Japan (symbol ¥, code JPY). The pair’s rate indicates how many Japanese yen are needed in order to purchase one US dollar. For example, when the USD/JPY is trading at 100.00, it means 1 US dollar is equivalent to 100 Japanese yen. The US dollar (USD) is the world’s most traded currency, whilst the Japanese yen is the world’s third most traded currency, resulting Read this Term tumbled below its 100 and 200 are moving averages at 136.829 and 136.349 respectively. The price moved right down to the 200 day moving average 135.269 and found bars on the first look. Moving stay below the 200 day moving average increases the bearish bias. The risk on the topside is now the 200 hour moving average. Stay below keeps the sellers more control.

• GBPUSD: The GBPUSD moved above the swing area between 1.22787 and 1.23436. Stay above that level keeps buyers more control. On the topside the 61.8% retracement of the 2022 trading range comes in at 1.24507. Move above that level and traders would target the swing higher between 1.2596 and 1.2665. That swing area is home to highs from May and early June.