The US dollar has moved lower after the University of Michigan data came in weaker than expectations. The one year inflation expectation came in at 3.1% versus 3.5%. The 5 year inflation expectations was at 2.7% versus 3.0%. The sentiment indices were also lower than expectations.

EURUSD: The EURUSD was trying to hold below a swing area between 1.6658 and 1.66669. The price has moved higher and tests the low from last week near 1.66854.

EURUSD tests the low from last week at 1.06854

USDJPY: The USDJPY has moved below the high from Wednesday's trade at 147.738 after creating a strong ceiling below the 148.000 level (near 147.941). The highs today took out the highs from last week at 147.867 but could not sustain momentum (nor get above the 148.000 level). The next target comes near 147.51. The 200 hour moving averages at 147.251. The rising 100 hour moving averages at 147.177 (green and blue lines in the chart below).

USDJPY moves away from highs from last week/ceiling today

GBPUSD: The GBPUSD held a swing area near 1.2386 – 1.23974, and is moving back toward its key 200 day moving average at 1.24326. Get above that key daily moving average - and stay above - would disappoint the sellers on the break below that moving average level. The last time the price traded below the 200 day moving average before this week was back in March.

The GBPUSD is looking back toward it key 200 day MA

US stocks are lower:

  • Dow Industrial Average average is down 102 points are -0.29%
  • S&P index is down -0.60%
  • NASDAQ index is down -1.00%

Yields are not applauding the lower inflation numbers, and remain higher on the day:

  • 2 year yield 5.0177% +0.4 basis points
  • 5 year yield 4.438% +1.99 basis points
  • 10 year yield 4.320% +3.0 basis points
  • 30 year yield of 4.410% +2.5 basis points