The US CPI came in higher than expectations. Shelter continued its rise with a 0.6% increase contributing to the gains. US stocks have moved the lower. Yields have higher, and the US dollar has moved higher:
- EURUSD: The EURUSD has moved down from 1.0790 to 1.0723. The low price from last week are being tested tested at that level.
EURUSD tests the lows from last week
- USDJPY: The USDJPY has moved to a new high going back to November 17. The price has moved above a swing area on the daily chart between 149.70 and 150.158.
- GBPUSD: The GBPUSD is now trading back below the 1.2600 level. The current price is trading at 1.2590. Stand below 1.2600 is more bearish and fixed-price out of the up-and-down trading range that persisted from mid-December until last week when the price finally broke below that level only to fail and move back above the level over the last few trading days.
The market is now pricing in -92 basis points of cats for the rest of the year from -113 bps before the data:
In US stocks, futures are implying:
- Dow industrial average -256 points versus -35 points prior to the release
- S&P index -51.34 points versus -15 points prior to the release
- NASDAQ index -264 points versus -108 points prior to the release
looking at the US yield curve:
- 2-year yield 4.623% +15.4 basis points
- 5-year yield 4.289% +16.1 basis points
- 10 year yield 4.290% +12.1 basis points
- 30-year yield 4.46% +7.5 basis points