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EURUSD moves higher. Goldilocks Univ of Michigan sentiment, and inflation data. – ForexLive

Consumer sentiment at the University of Michigan was 69.4, up significantly from 61.3 last month. The prediction was 62.0. However, what foreign exchange markets are responding to is a decline in inflation expectations. The one-year inflation measure fell to 3.1% from 4.5% the previous month. The five-year inflation indicator rose from 3.2% to 2.8%.

EURUSD is moving higher again to test the 100-day moving average and the 50% midpoint of the November trading range at 1.0763 and 1.0766. A rise above this level would be a disappointment to sellers who were fed up with strong US jobs data. There's nothing better than stronger growth and lower inflation.

On the back of further upward momentum, the 1.0781 level becomes the next downside target until the next 100-hour moving average at 1.07955. Remember yesterday. The high rose to test the falling 100-hour moving average, but eventually found willing sellers. Today's hurdle is lower at 1.07955. However, beyond that, the bullish bias increases from a technical perspective.

Conversely, maintaining the 100-day moving average and 50% retracement would give sellers more control, at least in the short term. Support target is 1.0725.

US stocks are currently rising:

  • The Dow Jones Industrial Average rose 113 points (0.31%) to 36,229.80.
  • The S&P index is currently up 19 points, or 0.42% at 4,605.
  • The Nasdaq index rose 70 points (0.49%) to 14,410.07.

The broader index has been positive this week.

  • S&P index rose 0.20%
  • Nasdaq index rose 0.72%

The Dow Jones Industrial Average is still down, but only by -0.05%. Are you at risk? Five consecutive weeks of wins for major indexes.

US yields are rising, but they are off their all-time highs and are still significantly lower (though not actually significantly lower) from their recent highs. Although shorter and higher on a weekly basis, the 30-year yield is actually still lower on a weekly basis.

  • The two-year bond yield rose 11.2 basis points to 4.689%. Yields rose 14.9 basis points for the week. The two-year bond yield peaked at 5.259% in October. This is still 57 basis points down from high yields.
  • The five-year bond yield rose 11.5 basis points to 4.228%. Yields rose 10.0 basis points for the week. The yield peaked at 5.0%. This was down 79 basis points from its all-time high.
  • The 10-year bond yield is 4.223% + 9.5 basis points. Yields rose 2.7 basis points for the week. The yield peaked at 5.021%. This was down 80 basis points from its all-time high.
  • The 30-year bond yield is 4.312% + 6.7 basis points. For the week, the other decreased by -7.6 basis points. The yield peaked at 5.178%. This was down 86 basis points from its all-time high.

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