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Brief Dovish Move on PPI Countered by Solid Jobless Claims

DATA REACT
  • An understandably smaller initial reaction relative to CPI yesterday, but the underlying theme remains: USD weakens slightly, putting EUR/USD at new daily highs as US 10y yield briefly touches a pullback low.
  • Equities see brief support to touch 4527.00 - a new contract high - but the move is short-lived, with most prices swiftly flipping back to unchanged.
  • Over the subsequent minute or two, the greenback bounce extends against some others in G10: USD/JPY now nearing the European morning high at 138.83.
  • Initial dovish market move on the soft PPI countered by strength in jobless claims - which fall 13k shy of forecast.

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