Test broken trend line and MAs (actually spikes above) but backs off

Test broken trend line and MAs (actually spikes above) but backs off

The US CPI was a touch higher ex food and energy and initial jobless claims continue to show a strong labor market. That sent the US CPI higher and above the 200 hour moving average and 200 bar moving average on the 4-hour chart at 108.26 and 108.289 respectively. The high reached 108.325 on the spike, only to back off. We currently trading at 108.17.

For the day, the pair moved lower in the Asian session, testing it's 50% retracement at 107.878. The low dipped to 107.85 before finding buyers and moving back higher.

The price remains below the close from yesterday at 108.455

The stock futures are a little lower with the Dow up 91 points. The S&P is up 5.5 points

US yields higher with the 2 year up 0.6 bps. The 10 year is up 1.7 bps and the 30 year is up 1.67 bps.

Gold is down -$3.50 or -0.25% at $1415.36

The chance of a 50 bp cut has been pared back to about 15% from 22% before the CPI data