The treasury borrowing announcment kickstarts stock and bond buying/dollar moves lower

The lower than expected borrowing numbers from the Treasury is leading to:

• Stocks moving higher
• Bond prices moving higher/yields lower, and the
• USD to the downside.

Looking at the US stock market, the NASDAQ index is now up 163 points or 1.05%. The S&P index is up 33.81 points and trades at a new record high level. The Dow Industrial Average is up 200 points or 0.52%.

Looking at the US debt market:

• 2-year yield 4.311% -5.3 basis points
• 5-year yield 3.972% -8.9 basis points
• 10- year yield 4.064% -9.6 basis points
• 30-year yield 4.306% -8.3 basis points

Looking at the forex market:

• The EURUSD – which bounced off its 50% midpoint at 1.07936, is backup looking to test it 200 day moving average 1.08420. The high price it just reached 1.0840. A move above the 100-day moving average opens the door for further upside momentum.

• The USDJPY is falling below its 100-day moving average at 147.575. The low price just reached 147.25. The next target area comes between 146.96 and 147.067.

The GBPUSD bottomed near its 50% (like the EURUSD) and has now moved up the 200 and 100-hour MA at 1.2703 to 1.27087. Buyers take back control as the ups and downs continue for that pair.

The USDCHF has moved down to retest the key downside target at 0.86059. That level is home to the low from earlier today and near the lows from January 17 and January 24 too (see red numbered circles on the chart below).