USD weakens slightly after PPI inflation data

Producer prices in the US increased 0.8% mom in February, less than an upwardly revised 1.2% rise in January and slightly below market forecasts of 0.9%. Prices for goods jumped 2.4%, the largest advance since data were first calculated in December 2009, mainly due to an 14.8% rise in gasoline costs. In contrast, the index for fresh and dry vegetables decreased 9.4%. Meanwhile, prices of services were unchanged as a 1.9% rise in cost of transportation and warehousing services and a 0.2% advance in margins for final demand trade services offset a 0.4% decrease in the index for final demand services less trade, transportation, and warehousing. year-on-year, producer inflation was unchanged at 10%, and staying at levels not seen since 1981. Core inflation rose 8.4% from a year earlier in February, slightly below an upwardly revised 8.5% rise in January and analysts estimates of a 8.7% surge. Still, February figures do not capture the surge in prices of oil and other commodities following Russia's invasion of Ukraine on February 24th.

EURUSD - the main currency pair rose after today's data release and is currently approaching a support zone in the 1.1000 area. Source: xStation5