PPI low. Initial claims pretty darn good.
A stronger dollar has the benefit of lowering the cost of imported goods. Has that contributed to the lower PPI today? Meanwhile over on the strong economic side of the equation (it is nice to get something strong) is the initial claims which declined to 264K. The 4-week average moved to the lowest in 15 years (April 2000).
The EURUSD spiked on the weaker PPI but has moved back lower on the claims strength. The high reached 1.14365. The low was able to stay above the 50% of the day's trading range at the 1.13198 level. Activity is choppy as shorts and longs ponder the next move. Sell high/Buy low. However, although the high for the day got pretty close to the next target at the 1.1449 level, if the price does not make a move below the 50% level, the sellers might get nervous. They have to prove they can take back some control. So the verdict is still out. (see prior post)
The USDJPY is also struggling a bit as well.. This pairs trading today has seen moves up and down and up and down. The midpoint of the day's range is 119.10 and the price is trading around that level. The low from yesterday was 119.02 and the low after the data held that level. A move below will be eyed as a step in the bearish direction.
