Core PPI increased by 0.2% month-over-month, in line with analyst expectations. Year-over-year, Core PPI grew by 2.8%, exceeding the analyst estimate of +2.7%.
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…
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