The dollar still holds in negative territory after the US PPI

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Calm day with US base PPI

Overall, this week’s data has been strong but not that big. Instead, the market focused on central banks, with the US Federal Reserve and Bank of England meeting last week. The FOMC voted for an immediate cut in November, with a reduction of $ 15 billion per month in purchases, implying that asset purchases would end completely by June 2022.

Markets continue to factor in a Fed take-off that is happening sooner than the Fed wants. While many Federal Reserve officials have gone to great lengths to point out that tapering does not imply an immediate rate hike, Bullard is certainly not one of them.

The dollar index fell for the third day in a row around 93.82 as the dollar / yen continued to post ask interest below the round figure of 113.00 after the release of the US PPI. For October, basic producer prices for final demand climbed 0.4%, after accelerating 0.2% in September but below market forecast of 0.5%. In annual terms, the producer price index remained the same as before at 8.6%.

The euro continues to struggle to recover the $ 1.16 region. The pound has taken a hit after the BoE, but has found ground in recent sessions, with the cable falling from a low of $ 1.3410 on Friday. While this was in part due to a weaker dollar, the pound itself also found a more stable base as the euro / pound failed to break above the 200-day Simple Moving Average (SMA).

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The S&P 500 and Dow Jones futures are down slightly after hitting record highs in previous days as investors wait for new US inflation data for clues on the direction of interest rates. European stocks were trading near all-time highs, supported by strong corporate earnings reports which boosted investor confidence.

Commodities and currencies commodities

In other markets, WTI crude oil futures continue to hold above $ 82.00 / bbl and gold is hovering above $ 1,825 / ounce today. The Aussie and Kiwi are slightly weaker against the greenback, while the Dollar / Loonie flattens around 1.2440, finding strong resistance at the 200-day SMA.


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