- May 15, 2021
- Posted by: Trading
- Category: News
The US Dollar kept close to its weekly high after a report showed that producer prices continued to rise, suggesting that inflation is also on the rise in the US.
The PPI had surged 1% in March, and April’s numbers showed the trend continuing. According to the report from the US Labor Department, the PPI came in at 6.2% on a year-over-year basis, above the 5.9% that analysts had predicted. Annualized core CPI, which eliminates volatile components, i.e., food and energy, came in at 4.1% against an expected 3.7%. The Labor Department also reported that initial claims for unemployment benefit was lower than expected at 473,000 for the period ended May 7th. Analysts had expected a fall to 490,000, while the previous reading was upwardly revised to 507,000 from 498,000.
In Tokyo trading as of 10:04 am, the US Dollar Index was trading at 90.7800 .DXY, up 0.03%. The EUR/USD was lower at $1.2074, down 0.0414%, off the session peak of $1.20743. The GBP/USD was also lower at $1.4044, down 0.0434%; the pair has ranged from a low of $1.40354 while the high was at $1.40617.
Markets to Focus on US Data
The economic calendar is light on market movers until later in the US market session when the US Census Bureau releases updates on retail sales. The US economy is largely consumer driven, and a rise in the numbers, while good for the economy in the short term, can be cause for concern. With inflation fears on the rise, higher retail sales could prompt speculation that the Federal Reserve might reconsider their monetary policy stance. A slew of other data is also due out from the US including industrial production and the Michigan Consumer Sentiment Index which analysts are predicting will show a slight rise to 90.4.