PPI rises 0.4% month over month, double the expectations. Year over year, it stands at 1.9% as expected. Core PPI rises 0.2% as predicted and 1.8% y/y, a bit above estimations. This is slightly better than expected.
Towards the publication, EUR/USD was on the back foot, dipping below 1.3530, GBP/USD traded in range around 1.7125 and USD/JPY at 101.75. The dollar reacts accordingly, with a small rise. The most notable movement is in EUR/USD, which just reached a new low of 1.3525.
The next support line is 1.35, followed closely by 1.3475. Resistance awaits at 1.3550. Fore more, see the EUR to USD forecast.
The Producer Price Index was expected to tick down from 2% to 1.9% year over year and Core PPI down from 2% to 1.7%. Month over month, both indices carried expectations for a rise of 0.2%.
The US is scheduled to release more data later on, and it’s also the second day of Janet Yellen’s testimony in Washington.
Yesterday, Yellen was only marginally more hawkish. Her words eventually helped the dollar.