Dollar buyers don't get any love from the US data
The Empire Manufacturing for April was weaker at 3.09 vs. 5.0. Now the industrial production - again for April - came in at -0.3% vs 0.0%. The prior month was revised higher to -0.3% from -0.6%. Capacity utilization came in at 78.2 vs 78.3. I know the prior month may have been revised higher but the -0.3% represents the 5th straight month decline. The higher dollar and oil market adjustments are making an impact.
The net result is the dollar buyers are switching their allegiance.
The EURUSD is back above the close resistance at the 1.1340-43 area (support now?). The consolidation high and 100 bar MA (blue line in the chart above) at the 1.1367 is the next upside hurdle (goes up to 1.1371 where the 50% of the days range is now at).
The USDJPY has seen a move back toward the 100 and 200 hour MA (blue and green lines). With the BOJ headline that they view a reserve cut as a potential future option, it makes that pair a push-me/pull-me pair (still). Not my favorite scenario.
On a Friday, activity can be impacted by less liquidity and end of week squaring. The dollar had higher intentions but the data so far has not supported that move. So the pot gets stirred. The bar room brawl begins and traders will fight it out.
