The US dollar fell after data from the University of Michigan came in weaker than expected. Expected inflation over one year stood at 3.1% compared to 3.5%. 5-year inflation expectations were 2.7% versus 3.0%. Sentiment indices were also lower than expected.
EURUSD: EURUSD was trying to stay below a swing zone between 1.6658 and 1.66669. The price has moved higher and is testing last week’s low near 1.66854.
USDJPY: USDJPY broke below Wednesday’s high at 147.738 after creating a solid ceiling below the 148.000 level (near 147.941). Today’s highs surpassed last week’s highs at 147,867 but were unable to maintain momentum (nor surpass the 148,000 level). The next target is closer to 147.51. The 200 hour moving averages are 147.251. The rising 100 hour moving average is 147.177 (green and blue lines in the chart below).
GBPUSD: GBPUSD has maintained a swing zone near 1.2386 – 1.23974 and is moving back towards its key 200-day moving average at 1.24326. Breaking above this key daily moving average – and staying above it – would disappoint sellers in the event of a break below this moving average level. The last time the price traded below the 200-day moving average before this week was in March.
US stocks are down:
- The Dow Industrial Average is down 102 points or -0.29%
- The S&P index is down -0.60%
- The NASDAQ index is down -1.00%
Yields do not applaud the decline in inflation figures and remain higher on the day:
- 2-year yield 5.0177% +0.4 basis point
- 5-year yield 4.438% +1.99 basis points
- 10-year yield 4.320% +3.0 basis points
- 30-year yield of 4.410% +2.5 basis points