The USD is lower after the PPI data. GBPUSD moved to new highs. EURUSD back above MAs
The USD is moving lower after better-than-expected U.S. PPI data reinforced the view that inflation pressures continue to ease. The softer inflation reading has weighed on the greenback, lifted equity futures, and pushed Treasury yields lower after an initial move higher ahead of the report.
- GBPUSD: The pair has climbed to a new session high, moving further away from the important technical cluster between 1.3395 and 1.3399, which includes the 100-day MA, 200-day MA, 50% retracement, and 100-hour MA. Holding above that confluence keeps buyers in control in the short term and shifts the focus toward higher resistance levels.
- EURUSD: The EURUSD has moved back above its 100-hour MA (1.1418) and 200-hour MA (1.1422). Remaining above those moving averages shifts the near-term bias back to the upside, with the 38.2% retracement of the decline from the May 29 high at 1.1462 as the next key target. That level has capped several recent rallies, making it an important technical hurdle.
- USDJPY: The USDJPY is modestly lower but continues to hold above its 100-hour MA (162.07) and 200-hour MA (162.11). A break below those support levels would tilt the short-term bias more firmly in favor of the sellers.
- USDCHF: The USDCHF has slipped back below its 100-hour MA at 0.8092 after briefly reclaiming it during the European session. The move lower now puts the focus on the 200-hour MA at 0.8077. A break below that level, followed by a move through the swing area down to 0.8062, would strengthen the bearish technical outlook.
Looking at the broader markets:
- U.S. equity futures:
- Dow Jones: +164 points
- S&P 500: +15.7 points
- Nasdaq 100: +191 points
- U.S. Treasury yields:
- 2-year: 4.149% (-4.3 bps)
- 10-year: 4.559% (-2.5 bps)
- 30-year: 5.086% (-0.8 bps)
- Commodities:
- WTI crude oil: +0.77%
- Gold: +0.26%
This article was written by Greg Michalowski at investinglive.com.