Trading US PPI Prep
LATEST HEADLINES FOR THIS OCTOBER RELEASE
- Federal Reserve inflation data is less of an impact on current outlook
- Federal Reserve Push back on aggressive rate cuts
- Latest NonFarm Private payrolls report came in stronger
- Latest JOLTs Job Openings came in stronger
- Latest ADP Employment came in stronger
- Latest Initial Jobless Claims came in weaker
- CPI came in stronger
US PPI FORECAST DATA
- News Prep
- PPI YoY
- PPI MoM
- PPI exFood/Energy YoY
- PPI exFood/Energy MoM
- Forecast
- 1.6%
- 0.1%
- 2.7%
- 0.2%
- Previous
- 1.7%
- 0.2%
- 2.4%
- 0.3%
- Lowest
- 1.5%
- 0%
- 2.5%
- 0%
- Highest
- 1.8%
- 0.2%
- 2.7%
- 0.2%
STRONGER PRINT
US PPI
- Bullish USD
- Bullish Yields
- Bearish Equities
- Bearish Gold
WEAKER PRINT
US PPI
- Bearish USD
- Bearish Yields
- Bullish Equities
- Bullish Gold
BIGGER PICTURE
US inflation data is less of an importance in the current climate, as the Federal reserve is mostly focusing on the labour market right now.
If we see a weaker print across the board for US PPI today this continues the support for a further rate cut in November which is currently priced in at 25bps. We would expect to see weaker dollar and yields.
If we see a stronger print across the board for US PPI today this could cause fear in the markets due to higher inflation which could lead to the Federal reserve holding interest rates for longer. This also supports yesterdays recent stronger CPI inflation data. We would expect to see stronger dollar and yields.
