Today the PPI number was released which showed that the headline number turned negative mom. US headline PPI fell for 3 consecutive months to -0.8% highest deceleration since December 2012.
Despite such number our view towards the data remains positive as well as the outlook for US dollar.
- The PPI remained relatively stable despite the backdrop of near 50% drop in oil prices
- The core PPI data (excluding food & and energy) has remained positive and registered growth of 1.6% YoY in today's release.
- The core PPI data fell from 2.1% registered in the release last month. We believe this is due to effect of low energy price instead of demand drought.
The data failed to move the market much as all awaits FOMC minutes later in the session. We expect similar muted impact from the Industrial production data to be released on 2:15 GMT unless some ground breaking data registers.
Dollar is trading at 1.1378 against the euro, 119.18 against yen & 1.5431 against pound.
