PPI could give the Dollar a new catalyst

Frank Walbaum

Important News this week

Thu, 13th, 08:00 CET UK Gross Domestic Product.

Thu, 13th, 14:30 CET US Producer Price Index.

Markets pause as PPI could give the Dollar a new catalyst

Equity markets remain stable but are struggling to establish fresh upside momentum. The Nasdaq continues to lag, while the Dow Jones is holding up considerably better, pointing to another rotation away from high-growth technology toward blue-chip stocks. Today's US PPI data could provide the next catalyst. A stronger reading could support the Dollar by reinforcing expectations that inflation remains sticky, while a softer result could revive pressure on the Greenback.
The US Dollar is showing early signs of strength, with USDCAD starting to move higher. EURUSD, GBPUSD and AUDUSD all look technically vulnerable against the Greenback. GBPUSD weakness is particularly interesting alongside GBPAUD, which is approaching an important resistance zone and could turn lower if the breakout fails. Crypto remains under pressure, with Bitcoin and most altcoins still struggling to attract buyers despite relatively stable equity markets.

Market talk

The market is increasingly showing signs of hesitation after the recent rally. The divergence between the Dow and Nasdaq suggests investors are becoming more selective, while weakness across major USD pairs points to potential further Dollar strength. Today's PPI could decide whether this develops into a broader Dollar move. If US inflation pressure remains elevated, stocks and crypto could face additional pressure, while a softer reading could quickly revive risk appetite.

Tendencies in the markets

Equities sideways, USD stronger, BTC weak, ETH weak, oil positive, metals at resistance, JPY weak.

Author

Frank Walbaum

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