“On a year-over-year basis, Core PPI exceeded analyst estimates.”, — write: www.fxempire.com
Producer Prices data may surprise markets as yesterday’s CPI report showed that Core Inflation Rate increased.
Treasury yields moved lower as bond traders reacted to the report. The yield of 2-year Treasuries pulled back towards the 3.96% level, while the yield of 10-year Treasuries declined towards 4.09%.
U.S. Dollar Index made an attempt to settle below the 102.80 level after the release of Producer Prices report. Producer Prices increased less than expected on a month-over-month basis, which is bearish for the American currency.
Gold moved towards the $2650 level as traders focused on U.S. dollar’s pullback.
SP500 climbed above the 5790 level as traders bet that inflation may be slowing down. NASDAQ settled above the 20,200 level, while Dow Jones tested the 42,500 level.