Deflation might not be as close as feared: The US Producer Price Index rose by 0.5%, more than +0.1% expected. This comes after a drop of 0.7% seen last month, and serves as a rebound. Core PPI rose by 0.1% as expected.
Another small positive surprise came from the US Current Account: the deficit came out at 106 billion instead of 110 predicted. The previous figure was revised to a deficit of 102 billion instead of 110 billion originally reported.
These figures help the US dollar: USD/JPY is now settling above 95 and rising to 95.16. It battled this line earlier. EUR/USD was fighting 1.33, and is now below this line.
The good data joins better than expected retail sales and jobless claims reported yesterday. The number of weekly claims is important as the Fed focuses on employment data to determine its next move.
The US will soon release the Capacity Utilization Rate and industrial output. And the last event for the week is the consumer sentiment number from the University of Michigan.
See how to trade the consumer sentiment event with EUR/USD.
The Fed decision is due on June 19th, and up to then, it’s a waiting game.
Share
