Producer prices in the US

• Core Producer Price Index (PPI) (m/m) (Oct), fact 0.5%, forecast 0.2%.
• Producer Price Index (PPI) (m/m) (Oct), fact 0.6%, forecast 0.2%.

The producer price index (PPI) unexpectedly increased in October, supporting the US dollar and rising optimism about the possibility of US interest rates hike in the near future.

Fig. 1. US Producer price index (PPI) chart (m/m).

 

The producer price index of the United States unexpectedly rose to the maximum values ​​of the last two years, supporting inflationary pressure, but also as a result supported the US dollar as well.

The US dollar index on this statistics resumed growth, which showed from the start of the day, but at the same time limited to overbought and formed resistance levels: 96.80 and 97.00.

Fig. 2. The US dollar index chart. The current price is 96.80 (10-year government bonds yield is the blue line)

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Andre Green

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