Yields moving lower. Dollar lower. Stocks higher after some sluggish data.
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The sluggish flash PMI data and Richmond Fed data, has yields moving lower, the dollar lower and stocks higher.
Looking at the yield curve, the shorter end is lower as traders adjust to the surprise weakness and ponder does this ease the Feds (and the markets) anxiety about growth/inflation, just when things were tilting the other way?.
- 2 year yield 4.918%, -5.3 basis points. The high reached 5.00% earlier today
- 5-year 4.603%, -5.7 basis points. The high reached 4.692%
- 10 year 4.573%, -4.9 basis points. The high-yield reach 4.652%
- 30-year 4.696%, -2.8 basis points. The high-yield reach 4.756%
Looking at the major indices:
- Dow Industrial Average is up 0.43%
- S&P index is up 0.89%
- NASDAQ index is up 1.23%.
The small-cap Russell 2000 is leading the way with a gain of 4.63%
In a Forex:
- EURUSD is above the February low at 1.06942 and looks toward a test of the 38.2% retracement of the move down from the April high to the April low at 1.0709. A move above that level would have traders targeting the 100 bar moving average on the four hour chart of 1.07315.
- USDJPY: The USDJPY is moved down to test its 100-hour moving average at 154.569 (blue line in the chart below). Moving below would give the sellers more control.
GBPUSD: The GBPUSD moved above both 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 is at 1.2455 and the next upside target needed to get to and through to increase the bullish bias.