The dollar spikes higher but has retraced gains. US yields are up a bit.

Technical Analysis

US CPI comes in higher-than-expected

The USD spite higher after the headline release of the CPI data, but as retraced some of those gains in up and down volatility.   

  • The GBPUSD is during to new session highs. 
  • The EURUSD move to a new low on the day at 1.21489, but is currently trading at 1.2182. 
  • The USDJPY spiked up to 109.712, but is trading at 109.57 currently. 
  • The USDCHF is spiked up to test the 200 hour moving average at 0.8985, but found willing sellers and is currently trading at 0.8954.

The AUDUSD, NZDUSD both initially moved lower but are currently trading higher on the day in a reversal..

The 10 year note is trading at 1.511% which is up from just over 1.50% earlier in the NY session. That is up 2.5 basis points.

The Dow is up 47 points. The the S&P is down around 1.5 points. The NASDAQ index is down 51 points. All are lower than the levels before the data (NASDAQ was down 26 points. The Dow was up 68 points).

The extreme moves in the CPI are in the price of used cars (up over 7% last month), and not broad based. The wage pressures are in the lower paying jobs and not broad based according to the initial chatter.  

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