The US CPI data today was higher than expected with the headline up 0.2% versus 0.1% expected and the core of 0.3% versus 0.2% expected. That increase the year on year measures as well with the core up 3.3% YoY. Not good. On the other hand is that initial jobless claims equal that's highest level going back to August 5, 2023.
Stocks have moved lower after the data. Yields have some back-and-forth but are currently down.
What about the forex market?
- EURUSD: The EURUSD did move lower and extended down toward a swing area target between 1.0900 and 1.09126, and then bounced back higher. The move higher has taken the price back above its 100-day moving average at 1.0933. The inability to stay below the 100 day moving average has me thinking that that level is now support. Stay above is more bullish. On the topside get above 1.0949 (high of a swing area and back above the 61.8% retracement at 1.0944) and more upside probing can be expected.
- USDJPY: The USDJPY is lower, but the low price stalled ahead of its broken 38.2% retracement of the move down from the early July high. That level comes in at 148.116. The current price is trading at 148.52. The low price for the day reached 148.23. Staying above the 38.2% retracement, keeps the buyers in play. On the topside the 149.35 – 149.55 is the topside target area. Buyers and sellers are battling it out in this currency pair with the eye probably on yields today.
- GBPUSD: The GBPUSD reacted negatively to the data initially, and in the process broke below its 50% midpoint of the move up from the August low to the September high. That level comes in at 1.30488, and is now support once again. Earlier this week, the price found early buyers against that midpoint level and bounced higher.
Premarket the NASDAQ index is down around 100 points. The S&P index is trading down -20 points