PPI

Risk-appetite-sensitive assets, including commodity currencies like the Canadian and Australian dollars, are seeing strong selling pressure amidst slowing US data

Costs associated with producers will make their way to the end of the supply chain over the next few months and eventually be reflected in the CPI.

Whilst GBP/USD has dragged itself from its post-CPI lows, key resistance looms and momentum could favour further downside.

If the data continues to come out weak for the US, it could mean a move dovish Fed than expected.

Although it had an immediate impact on the markets once it was released, the PPI print alone shouldn’t have too much influence on the FOMC decision.

In this week’s edition, we discuss the dollar, EUR/USD, gold and the Russell index.

Both the CPI and PPI are pointing towards a slowdown in the pace of interest rate hikes for the Fed, to 50bps from 75bps.

10-year yields and USD/JPY appear to be continuing with their moves higher as markets wait for the CPI print.

10-year yields and USD/JPY appear to be continuing with their moves higher as markets wait for the CPI print.

The reaction to today’s PPI print was relatively muted compared to that of yesterday’s CPI print.

Perhaps a bit of basing and consolidation is needed for the metal to gear up for a clean breakout above $1800.