Dollar Slips as US Producer Prices Rise Less Than Expected

MacroDigital Finance
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Summary · why it matters

The dollar index fell 0.12% after US June producer prices rose less than expected, reducing the odds of a Federal Reserve rate hike this month to 11% from 43% on Monday. The final demand PPI eased to 5.5% year-over-year from 6.0%, below the 6.2% forecast, while the core measure rose 4.7%, also missing expectations. Limiting the dollar's decline were safe-haven flows after US forces launched airstrikes against Iran for a fifth straight day and the Empire manufacturing survey rose to 15.6, above the 9.2 estimate. The euro gained 0.12% against the dollar, supported by higher European bond yields, though Eurozone industrial production unexpectedly fell 0.2% month-over-month. The yen edged up 0.05% as weaker US data weighed on Treasury yields, while Japanese Finance Minister Satsuki Katayama noted discussions about adding government bonds to a tax-free investment program. Gold rose 0.06% and silver fell 0.58%, with precious metals mixed as lower yields provided support but stronger equities and higher oil prices limited gains.

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