US: PPI data in the limelight – Rabobank
|Analysts at Rabobank point out that we have the PPI figures from the US which will be the key economic release for today’s session.
Key Quotes
“Producer price inflation has been accelerating since early 2016. Although there has been a modest dip between April and June, the annual growth rate resumed its upward trajectory last month. The measure that excludes food and energy is showing a similar pattern and as such diverges quite sharply from the development in core CPI. This is likely to be one reason why the Fed has been reluctant to change its inflation narrative (recent fall in inflation is partly transitory) – a message that also reverberated in the September FOMC meeting minutes. With commodity prices broadly stable over September and the DXY index only slightly higher, it does not seem likely that today’s set of PPI data (consensus estimate looking for unchanged core rate) will change the balance of opinion in the Fed. Tomorrow’s data (CPI), however, are likely to receive more attention.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.