US stocks move higher after tamer CPI. Yields are now in negative territory. USD lower

The better than expected US CPI data has sent stocks higher and yields lower. The US dollar is pushing lower but rebounding in volatile trading.

A snapshot of the major stock indices currently shows that the futures are implying:

• Dow +430 points
• S&P index +66 points
• NASDAQ index +305 points

in the US debt market:

• 2 year yield 3.940%, unchanged
• 5 year yield 4.026%, -1.6 basis points
• 10 year yield 4.285%, -0.3 basis points

Markets are pricing and 76 basis points of cuts between now and the year end. Up from 70 basis points before the release.

EURUSD: The EURUSD moved to a new day high at 1.09305, but remain below the high price from yesterday at 1.09464. The price has move back down and is now pushed toward the lows at 1.0895. The US dollar has been moving lower and it may be a euro thing versus a US thing.

This article was written by Greg Michalowski at www.forexlive.com.