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12:32 PM · 12 July 2024

BREAKING: USD gains after PPI data

EUR/USD
Forex
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US PPI inflation report for June was released today at 1:30 pm BST. While data on US producers' price growth is always worth watching, it should be said that today's report can be considered second-tier release given that CPI print was already released yesterday. Market was expecting PPI report to show a small acceleration in headline and core measures.

However, actual report turned out to be a big surprise. Headline and core PPI measures accelerated much more than expected, with core measure climbing to 3% - the highest level since Q2 2023. Release triggered a hawkish reaction in the markets with USD gaining, while US index futures and precious metals dropped.

US, PPI inflation for June

  • Headline (annual): 2.6% YoY vs 2.3% YoY expected (2.2% YoY previously)
  • Headline (monthly):  0.2% MoM vs 0.1% MoM expected (-0.2% MoM previously)
  • Core (annual): 3.0% YoY vs 2.5% YoY expected (2.3% YoY previously)
  • Core (monthly): 0.4% MoM vs 0.2% MoM expected (0.0% MoM previously)

EURUSD dropped after US PPI data release and tested 50-period moving average on 30-minute interval. Source: xStation5

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