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1:32 PM · 13 December 2023

BREAKING: USD drops after PPI reading

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US PPI inflation report for November was released today at 1:30 pm GMT. Report was expected to show a deceleration in headline as well as core producers' price growth. However, it should be said that this was a second-tier data release, given that CPI inflation report was already released yesterday. 

Actual report surprised to the downside with both headline and core measures coming in below market expectations. On a monthly basis, headline and core price remained unchanged from the previous month. Release triggered a dovish reaction in the market with USD dropping and equities gaining. Market attention now shifts to FOMC rate decision, scheduled for 7:00 pm GMT.

US, PPI inflation for November

  • Headline (annual): 0.9% YoY vs 1.0% YoY expected (1.3% YoY previously)
  • Headline (monthly): 0.0% MoM vs 0.1% MoM expected (-0.5% MoM previously)
  • Core (annual): 2.0% YoY vs 2.2% YoY expected (2.4% YoY previously)
  • Core (monthly): 0.0% MoM vs 0.2% MoM expected (0.0% MoM previously)

EURUSD jumped in a knee-jerk move, following lower-than-expected US PPI reading for November. However, majority of those gains has been erased already. Source: xStation5

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