All the PPI numbers came out better than expected: no change in PPI m/m, a fall of only -0.8% y/y, a rise of 0.3% in core PPI m/m and a rise of 0.9% in Core PPI y/y.
While the numbers are not hugely above expectations, the small pickup could serve as a positive sign for the Fed when it comes to make its decision. Needless to say, there are endless data points and data is not the only factor.
EUR/USD is trading at 1.1272, off the highs of the day. USD/JPY is around 120.75, GBP/USD at 1.5432, USD/CAD at 1.3265, AUD/USD around 0.7060 and NZD/USD at 0.6295.
US producer prices were expected to drop by 0.1% m/m in August after rising 0.2% in July. Y/y a fall of 0.9% was on the cards. Core PPI carried expectations for a rise of 0.1% m/m and an advance of 0.7% y/y.
Producer prices provide yet another measure of inflation, at the early stages. Despite positive surprises in recent months, the figures are at rock bottom levels, mostly due to the drop in oil and other commodity prices.
We have one more important release for today, and it’s forward looking: the preliminary consumer sentiment from the University of Michigan. See how to trade the consumer confidence with EUR/USD.
The PPI often serves as a prelude to the CPI: the consumer price index. We will get that next week, on the same day that we hear from the Fed. Markets are already tense towards the big event.
Fed September Decision – all the updates
Share
