New York NY Fed Pres. Williams poured cold water on the euphoria for rates a bit when he said the Fed is focused on getting inflation down and pooh-poohed the market reaction after the FOMC rate decision and press conference from Fed Chair Powell. Rates have moved higher with the 2-year yield now up 4.2 basis points and the 10-year yield up to basis points. Rates were lower ahead of his comments.

The US dollar also moved higher:

  • The EURUSD had moved below a swing area between 1.0958 and 1.0964 in the European session, and raced down to a intraday low of 1.09036. That was just short of the 38.2% retracement of the move up from last Friday's low at 1.08996 (call it 1.0900). That is now the close support. Resistances up near 1.0960 now.
  • The USDJPY moved up to test the 200 day MA at 142.519. The high price reached 142.445 before stalling the rise. The price will have to move above that longer term MA level to give buyers some hope, and disappoint the sellers on the break of the 200 day MA this week. The fall below the 200 day MA this week was the first break since mid-May.
  • The GBPUSD moved below a swing area between 1.2723 and 1.27325 after NY Fed Pres. Williams comments. That area will now be close resistance intraday. Stay below for bearish entries would look toward the 30.2% retracement of the week's trading range at 1.2681. Move back above and buyers are back in firm control.