The US PPI data came out and showed the YoY higher than expectations (but the headline was lower than the revised higher level), but the MoM data was more tame. The short end of the yield curve is a little lower. The long end, not so much.
The US stocks are steady but lower on the day.
In the forex, the price action in the three major currency pairs are trading up and down since Wednesday in relatively narrow trading ranges. That despite the CPI, jobless claims and the PPI data. That says to me, that the traders in charge of moving the market are battling at current levels.
In the video, I speak to the ups and downs. Below I write about the levels.
EURUSD: The EURUSD trades above and below the 100-day MA with 1.0954 area as resistance. The downside stalled yesterday near swing area support and 1.0900. The 54 pip range since Wednesday is not a heckuva lot. In between 100 day moving average is seen interest above and interest below. The market is trying to figure out which way it wants to break.
USDJPY:The USDJPY is also trading within a range (albeit larger but relative to the price action of late fairly narrow). The downside is defined by the 38.2% retracement of the move down from the July high. That level comes in at 148.116. The high is near the end August high of 149.356 up to this week’s high at 149.55. The range of 144 pip since Wednesday – like the EURUSD – is not a heckuva lot. Traders await the next shove outside that range at some point.
GBPUSD: What is interesting technically in the GBPUSD is the high price yesterday and I prices today have found willing sellers near the falling 100 hour moving average at 1.30766. The current price is trading at 1.30632. Get above that moving average and stay above would give the buyers some hope at least in the short term. Absent that in the sellers are still in control. Looking more broadly, the 50% midpoint of the move up from the August low comes in at 1.30488. The price moved below that midpoint yesterday, but could not stay momentum below the level. Getting and staying below the 50% would the sellers more confidence and hope for more downside momentum.