Sluggish PMI flash data and Richmond Fed data lead to lower yields, lower dollar and higher stocks.
Looking at the yield curve, the short end is lower as traders adjust to the surprise weakness and wonder if this eases Fed (and markets) anxiety over growth/inflation , just when things were leaning the other way?.
- 2-year return 4.918%, -5.3 basis points. The high hit 5.00% earlier today
- 5 years 4.603%, -5.7 basis points. The highest reached 4.692%
- 10 years 4.573%, -4.9 basis points. High yield reaches 4.652%
- 30 years 4.696%, -2.8 basis points. High yield reaches 4.756%
Looking at the main clues:
- The Dow Industrial Average is up 0.43%
- The S&P index is up 0.89%
- The NASDAQ index is up 1.23%.
Small-cap Russell 2000 leads the way with a 4.63% gain
On Forex:
- EURUSD is above the February low at 1.06942 and heading towards a test of the 38.2% retracement of the decline from the April high to the April low at 1, 0709. A move above this level would cause traders to target the 100-bar moving average on the four-hour chart of 1.07315.
- USDJPY: USDJPY is moving lower to test its 100-hour moving average at 154.569 (blue line in chart below). Moving below would give sellers more control.
GBPUSD: GBPUSD broke above its 100 and 200 hour MAs (blue and green lines on the chart below) at 1.2406 and 1.2448 respectively. The 38.2% of the April trading range sits at 1.2455 and the next upside target must be reached and breached to increase the bullish bias.
cnbctv18-forexlive
