Wednesday 7.14, for the past 24 hours:
• EURUSD has dropped 84 pips against the previous day close; US dollar had an unexpected strike when CPI release.
• ↓ 103 pips High & Low extreme move, vs. 64.2 pips of 22 day Average Range.
Strength (0~10) Comparison:
• USD in early session MEDIUM 6.2 -> 8.0 STRONG of late session
• EUR in early session MEDIUM 3.5 -> 0.8 WEAK of late session
Market Focus & Moods:
• All the focus coming into the day was on the CPI report and it delivered fireworks with a surprisingly high print. However the market action wasn't quite as convincing. The US dollar rallied 50 pips initially then began to give it back. The second act was the bond auction and a surprise tail led to another wave of US dollar buying that was especially severe against the low-yielders including JPY and EUR.
• Wednesday, LON 5pm, Fed's Chair Powell testifies. Don't miss it.
Next Step:
• I have no bias for EURUSD just let it float anywhere tomorrow, esp. afternoon Powell's testifies.
• EURUSD has dropped 84 pips against the previous day close; US dollar had an unexpected strike when CPI release.
• ↓ 103 pips High & Low extreme move, vs. 64.2 pips of 22 day Average Range.
Strength (0~10) Comparison:
• USD in early session MEDIUM 6.2 -> 8.0 STRONG of late session
• EUR in early session MEDIUM 3.5 -> 0.8 WEAK of late session
Market Focus & Moods:
• All the focus coming into the day was on the CPI report and it delivered fireworks with a surprisingly high print. However the market action wasn't quite as convincing. The US dollar rallied 50 pips initially then began to give it back. The second act was the bond auction and a surprise tail led to another wave of US dollar buying that was especially severe against the low-yielders including JPY and EUR.
• Wednesday, LON 5pm, Fed's Chair Powell testifies. Don't miss it.
Next Step:
• I have no bias for EURUSD just let it float anywhere tomorrow, esp. afternoon Powell's testifies.
