The major stock indices are opening with solid gains led by the NASDAQ index. US CPI came in tamer than expectations at 0.0% for the headline number and 0.2% for the core measure. Expectations for a Fed tightening have been taken out of the market in December. Feds Barkan has said that the Fed has made real progress on inflation. Yields are sharply lower. The dollar is lower as well.

A snapshot of the major indices shows:

  • Dow industrial average is trading up 327 points or 0.95% at 34668. Yesterday the index rose 0.16%
  • S&P index is up 61.91 points or 1.40% at 4473.50. Yesterday the index fell -0.08%
  • NASDAQ index up 246.01 points or 1.78% at 14020.50. Yesterday the index fell -0.22%

In the US at that market, yields are sharply lower with the 2-year now down over -20 basis points:

  • 2-year yield 4.840% -20.0 basis points
  • 5-year yield 4.447% -21.5 basis points
  • 10-year yield 4.555% -17.7 basis points
  • 30-year yield 4.613% -13.2 basis points

Looking at other markets:

  • Crude oil is trading up $0.76 or 1.01% at $79.04
  • Spot gold is trading up $15.01 or 0.78% at $1961
  • Spot silver is trading up $0.57 or 2.6% at $22.87
  • Bitcoin is trading at $36,565

The USD is sharply lower.

  • The EURUSD is now broken above its 100 and 200-day moving averages at 1.0791 and 1.0802 respectively. The high price reached 1.0820 so far. Stan above those moving averages is more bullish
  • The GBPUSD is testing it at a 200-day moving average of 1.24373 after moving above the high price from November at 1.24278. Moving above that level would increase bullish bias.
  • The USDJPY is testing it's a 200-hour moving average at 150.743. Moving below that level is more bearish.
  • The USDCAD is falling below its 200-hour moving average of 1.3763 and trades at 1.3754 currently after trading as low as 1.3738. Stay below the 200 hour moving average keeps the sellers and firm control

Looking at the strongest to the weakest of the major currencies. The NZD is the strongest and the USD is the weakest of the major currencies: