The USD has initially moved higher after the US CPI that saw the CPI rise by 0.5% with the core of 0.4%. However, there has been a reversal back to the downside.
The YoY came in at 6.4% versus 6.2% expected. The Core came in at 5.6% versus 5.5% expected.
- Shelter accounted for more than half of the rise for the month. It rose by 0.7% for the month.
- Use car prices fell -1.9% on the month.
The March hike of 25 basis points remains around 91%.
Ahead of the release US stock in premarket trading implied:
- Dow Industrial Average up 82 point
- S&P index up 14 points
- NASDAQ index of 45 point
- WTI crude oil was trading near $79
- 2 year yield was at 4.514%
- 10 year yield was at 3.677%
After the release 5 minutes after:
- Dow Industrial Average up 145 points
- S&P index up 20 points
- NASDAQ up 62 points
- WTI crude oil is still trading around $79
- two year yield is at 4.488%
- 10 yields at 3.664%
In the forex...
- EURUSD: The EURUSD moved down to test the 100 hour moving average at 1.07193 soon after the data, but then reversed back to the upside and tested the topside target near the 38.2% retracement and the swing area between 1.0799 and 1.0805 (see earlier post outlining the levels). The price is trading above and below the 200 hour moving average as I type at 1.07629
USDJPY: The USDJPY is another pair that has seen a ping pong between technical levels. Looking at the 4-hour chart, the pair moved up to test the 50% of the move down from the December high, and the swing area between 1.32689 and 1.3290 (see red numbered circles). The high price reached 132.886. The subsequent fall, took the price down to test the 38.2% of the same move lower, and a lower swing area on the chart between 131.297 to 131.567 (see green numbered circles). The price currently trades between the extremes.
Dow Industrial Average up 64 points
S&P index up around five points and the NASDAQ index up around nine points
