· US CPI headline fell in line for April, coming in at 0.3% MoM. Core prices however were slightly firmer, coming in at 0.2% versus 0.1%.
· Initial claims fell to 297k, well below 320k consensus.
· Empire manufacturing sprung higher from 1.29 to 19.01 versus 6.0 consensus.
It was supposed to be good for the USD and that is the way it moved at first then went the other way and now pretty much where it was prior to it. It is the usual movement this year when news comes out. It is hard to predict where good news will move the market but you can make some money scalping it and picking up some points here and there. Be careful not to risk more than you are gaining though.
Cable is now 15 points above what it was prior to release and AUDUSD is about 20 points lower…EURUSD and USDJPY is where it was before the release. A bit of a no-event maybe but we can hope that it will follow and sell EURUSD and buy USDJPY.