The ISM non-manufacturing index (lowest since March 2020) has reversed the US dollar and yields. The Dow has also moved positive after the report. The S&P and NASDAQ and are also now positive.
- Dow industrial average up 103 points
- S&P index up 14.67 points
- NASDAQ index up 31 points
Looking at us yields:
- 2-year yield is down -0.6 basis points
- 5-year yield is up only 0.9 basis points
- 10 year yield is now up only 1.8 basis points
- 30-year yield is up 2.5 basis points
All have come off their highest levels
For the US dollar:
- EURUSD is now about it 200-hour moving average 1.0798 and also above a swing area target between 1.07950 and 1.08036. The 200 day moving average looms above at 1.08322
- USDJPY moved to a high of 151.947 in the early US trading,. That got within two pips of its highest level going back to 1990 and the high price from last week. The price is now trading at 151.81 after trading to a low of 151.63. The 100 hour moving average and 200 moving average at 151.49 and 151.44 remain as targets that would need to be broken on the downside to increase the bearish bias
- GBPUSD moved up and moved above 200-day moving average of 1.25865, it’s 100 hour moving average at 1.25938, and tested its 200- hour moving at 1.2608. The price is also moved back within the “Red Box value area” that has confined most of the trading going back to December. The low swing area of that value area is between 1.2594 and 1.2613.
This article was written by Greg Michalowski at www.forexlive.com.