US PPI Preview: Another positive surprise in the pipeline?

Pablo Piovano FXStreet

The acceleration of the US Producer Price Index (PPI) is anticipated to continue. In fact, the US Bureau of Labor Statistics predicts the inflation tracked by PPI to edge a tad higher in the last month of 2023, following the previous flat reading and October’s 0.4% monthly decline.

The release of the PPI report has been growing in significance almost pari passu with the publication of monthly inflation figures gauged by the CPI and PCE, all against the backdrop of the current data-dependent stance from the Fed and in light of increasing speculation of rate cuts at some point early in the spring.

The Headline PPI is expected to rise 0.1% MoM and 1.3% from a year earlier. In addition, Core PPI is seen rising at a monthly 0.2% and 1.9% over the last twelve months.

So far, anticipation for PPI appears reasonable, especially when considering the uptick in the Consumer Price Index (CPI) data released on Thursday.

Another positive surprise in the release could lend transitory support to the US Dollar, although the real impact on the Fed’s decision-making process appears blurred (to be optimistic).

Premium

You have reached your limit of 3 free articles for this month.

Start your subscription and get access to all our original articles.

Subscribe to Premium Sign In

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

EUR/USD extends its optimism past 1.1900

EUR/USD retains a firm underlying bid, surpassing the 1.1900 mark as the NA session draws to a close on Monday. The pair’s persistent uptrend comes as the US Dollar remains on the defensive, with traders staying cautious ahead of upcoming US NFP prints and CPI data.

GBP/USD hits three-day peaks, targets 1.3700

GBP/USD is clocking decent gains at the start of the week, advancing to three-day highs near 1.3670 and building on Friday’s solid performance. The better tone in the British Pound comes on the back of the intense sekk-off in the Greenback and despite re-emerging signs of a fresh government crisis in the UK.

Gold picks up pace, retargets $5,100

Gold gathers fresh steam, challenging daily highs en route to the $5,100 mark per troy ounce in the latter part of Monday’s session. The precious metal finds support from fresh signs of continued buying by the PBoC, while expectations that the Fed could lean more dovish also collaborate with the uptick.

XRP struggles around $1.40 despite institutional inflows

Ripple (XRP) is extending its intraday decline to around $1.40 at the time of writing on Monday amid growing pressure from the retail market and risk-off sentiment that continues to keep investors on the sidelines.

Japanese PM Takaichi nabs unprecedented victory – US data eyed this week

I do not think I would be exaggerating to say that Japanese Prime Minister Sanae Takaichi’s snap general election gamble paid off over the weekend – and then some. This secured the Liberal Democratic Party (LDP) an unprecedented mandate just three months into her tenure.