Economic data released today showed mostly weak numbers, with initial jobless claims slightly higher than expected but still at historically low levels. Housing starts and the Philly Fed both missed estimates, while import/export prices came in higher than anticipated. Despite this, the Fed rate cut pricing moved down slightly and Treasury yields rose, with US 2-year yields up 3.0 basis points on the day.
The market is currently shifting its focus from inflation to growth, with yesterday likely being the tipping point as CPI numbers were softer and retail sales declined. The US dollar/Japanese yen pair has closely followed the movement in yields, with the pair up 31 pips to a session high at 155.21. It seems challenging to directly attribute these market movements to the economic data, as it could be more about position squaring and the market taking a breather. S&P 500 futures are currently trading flat, indicating a level of uncertainty in the market.