The USD has moved lower after the weaker than expected PPI data. Stocks are higher with the Dow futures implying a gain of 375 points or so. The S&P is up about 75 points and the Nasdaq is up about 320 points.
Yields are lower with the 10 year down -8.4 basis points at 3.782%.
In the forex,
- the EURUSD moved above its 200 day MA at 1.0428, and ran to a high of 1.0480, but has moved back to retest the 200 day MA. Key level today. Close above would be the first since June 2021
- The USDJPY moved lower and sniffed the 38.2% of the huge move higher in 2022 at 137.24. The price over the last 2 days have been able to stay below the broken 100 day MA at 140.834. That range from the 38.2% to the 100 day MA is the trading range for this pair.
- The GBPUSD moved above 1.2000 on the news and moved to a high of 1.20283. That got close to the 50% of the 2022 trading range att 1.20499. Was it close enough for traders to lean and give cause for pause for the rally? It certainly is a risk and bias defining target on the topside.
- The USDCAD has been able to hold support on the downside where swing area, 38.2% and 100 day MA have all stalled the fall near 1.3207 to 1.32342 area. The buyers leaned and the price moved modestly higher on the successful tests.
