Wall Street indexes are reducing much of the gains from the beginning of the session when investors took a positive view of US inflation data, which supported possibly more dovish Fed. Profit-taking pressure can be seen in the shares of Nvidia (NVDA.US), among others, which failed to sustain gains from the beginning of the session. The VIX index has also been gaining for roughly two hours.
The beneficiary of risk aversion is, of course, the dollar index, which managed to bounce from 101.5 to 102.1 in no time - helped by hawkish comments from Mary Daly, of the San Francisco Fed. Daly expressed her belief that rate hikes are needed until the Fed sees downward momentum in all measures of price pressures, and that CPI euphoria may be premature. It is possible that if the pro-dollar trend continues EURUSD will again struggle to stay above the 1.10 level.
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Looking technically at the Nasdaq-based contact, the stock (US100) managed to go above the EMA100 average today. However, the gains did not last long, and sellers appeared at the resistance zone of 15415-15430 points, which was derived from previous local peaks and the upper limit of the 1:1 system.
