The US dollar is under pressure. Producer prices in the US are rising

The US dollar remains under pressure, despite positive data on producer prices in the US.

• According to published data, in January the producer price index increased by 0.4%, exceeding the previous value at the level of 0.0%. On an annualized basis, the growth rate was 2.7%, while analysts had expected the index to slow to 2.2%.
• In turn, the number of applications for unemployment benefits amounted to 230 thousand, which is lower than the analysts’ forecast at the level of 237 thousand, but still exceeds the previous value of 223 thousand.

The main pressure on the US currency is provided by the doubts of investors that the Fed may decide to accelerate the rate of interest rate hikes.

The US dollar index continues to move near today’s low, which is a signal of a possible continuation of the decline in the US currency in the second half of Thursday’s trading.

Fig. Graph of the US dollar index. Current price of DXY is 88.63

Alexander Sivtsov