Following the U.S. data dump, which showed PCE inflation coming in a touch below expectations (just a touch), Treasury yields have moved lower, with the 2-year yield down 3 basis points to 4.106% and the 10-year yield down 2.5 basis points to 4.374%. Stock futures are sharply higher, led by technology shares after Micron Technology delivered a blowout quarter, sending its shares up nearly 18%.

The Nasdaq is higher by 676 points, while the S&P 500 is up 64 points and the Dow Jones Industrial Average has gained 251 points. Meanwhile, WTI crude oil futures are down $0.56 to $69.78. Precious metals are benefiting from the decline in yields, with gold up $35 and back above the $4,000 level at $4,027, while silver has surged $1.40, or 2.53%, to $58.87.

In the currency markets:

• USDJPY: The pair pushed to 161.94, just one pip shy of the 2024 high at 161.95, the highest level since 1987. The pair is currently trading at 161.83, still within striking distance of that key high. On the downside, the rising 100-hour moving average at 161.598 needs to be broken and remain broken to give sellers some hope. Absent that, the buyers remain firmly in control.
• EURUSD: The pair briefly moved back into positive territory, climbing above the prior close near 1.1356 and reaching a high of 1.13637, though that remained short of the day’s peak at 1.1374. The pair has since slipped back to 1.1354. While the bounce off the low at 1.1334 has been encouraging, upside momentum remains limited. The falling 100-hour moving average at 1.1402 remains the key hurdle that buyers need to overcome.
• GBPUSD: Sterling rebounded from session lows near 1.3156 to a post-data high of 1.3186, but that move also fell short of the European-session high at 1.3197. The pair currently trades near 1.3182. The falling 100-hour moving average at 1.32043 remains the key technical level. A move above—and a sustained hold above—that level would give buyers a short-term technical victory.

While inflation eased slightly and Micron’s results fueled the equity rally, another inflation theme may be emerging: the rising cost of AI infrastructure. Apple announced broad-based price increases this morning due to soaring memory and storage costs tied to AI-related demand. The MacBook Neo now starts at $699, up from $599, while the MacBook Air has risen to $1,299 from $1,099. Prices were also increased for several MacBook Pro, iPad, and iPad Air models, and the Vision Pro now starts at $3,699. Although the iPhone, AirPods, and most accessories remain unchanged, Apple indicated that additional price increases may still be on the horizon as the AI-driven chip boom continues to ripple through the technology supply chain.