Initial jobless claims and PPI coming up next. Bond auction later

It’s Fed-hangover day. It’s the day when real money takes in everything it heard from the FOMC and the CPI report and we start to see markets move. So far, the reaction to yesterday’s news has been indecisive and confused. The initial dollar selloff reversed, particularly in USD/JPY ahead of Friday’s BOJ decision.

Stocks remain bid with tech proving to be the safe haven and S&P 500 futures are up 0.2%.

The calendar has a couple of notable releases at the bottom of the hour with initial jobless claims and PPI. Claims are forecast at 225K, a dip from 229K a week ago. PPI is seen at 2.5% y/y and 2.4% y/y ex-food and energy. A downside miss would add to the sense that price pressures are fading.

Critically, the US is also selling 30-year bonds at 1 pm ET. The strong sale of 10s earlier this week was a surprise and leaves the market unsure of what to expect today. 30-year yields are currently up 2.6 bps to 4.47%.

This article was written by Adam Button at www.forexlive.com.