Themes

• General mood is “risk off”
• U.S. CPI slightly higher than expected CPI: +0.6%; Core CPI: +0.6%
• U.S. Initial Claims at 223k (from talk of 227k)

What’s Moving

Ah the market. U.S. trade opened to a higher-than-expected CPI reading, which as higher across most components. This saw the USD catch a strong bid and weighed on U.S. stocks, before the initial move petered out and most markets went back to levels seen just before the data release.

We waited all week for CPI numbers and the move lasted about fifteen minutes.

For the technicians, the USD/EUR has posted a daily outside day up pattern (Bullish engulfing). 

Thoughts

Should be another sleeper in Asia today, with Japan out on holidays (National Foundation Day) and with a distinct lack of local data. RBA Governor Lowe will speak today, but he is likely to reiterate the patient stance of the RBA.

Pivot Points