The US employment cost data rose by a solid 0.9% for the 2nd quarter in a row. In a world of rising inflation, having wages and benefits advance with inflation is the only hope for consumers. Absent that and the consumer falls further and further behind. The good news is that wages increase size you 20% last quarter and 0.9% in this quarter with benefits also rising. Of course it would be better if inflation was lower and wage costs were not rising by near 1% each quarter as there are always winners and losers. The data may mask some workers getting much higher pay while other workers are left behind. Nevertheless, the US dollar has moved higher.

EURUSD: The EURUSD has moved down to a new low for the day and in the process is testing the swing area between 1.1471 and 1.1482.  Move below is more bearish.  Bounce and buyers are trying to hang on as relevant.  The 38.2% did stall a corrective rally in the European session giving the sellers the go-ahead to push lower. 

GBPUSD: The GBPUSD has moved to a new low and is testing the converged 100/200 day MAs. KEY level for both buyers and sellers.  

USDCHF: The USDCHF is pushing higher and into a swing area between 0.8108 and 0.8119.  Get abvoe and the 100 and 200 hour MAs become the target at 0.8150 area. 

US yields have moved higher and trades at new highs:

• 2 year 4.303%, up 7.4 basis points
• 5 year 4.451%, up 7.8 basis points
• 10 year 4.730%, up 6.9 basis points
• 30 year 5.260%, up 5.5 basis points

This article was written by Greg Michalowski at investinglive.com.