The markets are rocking and rolling after CPI data came in higher than expected.

EURUSD: The EURUSD moved back below its 100 and 200 hour moving averages near 1.0344, tilting the bias back to the downside. Stay below those levels is more bearish.

USDJPY:The USDJPY has moved above the 38.2% at 153.959 of the move down from the January high. The 50% and swing area at 154.77 to 154.967 is the next target. The price is at 154.36.

GBPUSD: THe GBPUSD is back below its 100 and 200-hour MAs at 1.24098 to 1.24191. The price is back near the swing area and the broken 38.2% of the move up from the January low. That area comes in at 1.23515 and 1.2377.

The Federal Reserve has little choice but to maintain its current stance or consider a more flexible approach to rates, given the potential inflationary impact of tariffs.

In the US debt market:

• 2 year yield 4.375 +8.6 basis points
• 10 year 4.618%, +8.2 basis points
• 30 year 4.819%, +7.2 basis points

The 10 year yield has moved to the highest level since January 24. The high for the year reached 4.809% back on January 14.

Looking at the US stock market, futures implying sharply lower levels:

• Dow -439 points
• S&P -62 points
• NASDAQ -250 points

December is the first rate cut now (prior September)

WSJ Timiraos is out tweeting: