US Dollar softer after PPI underdelivers on market expectations
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, is trading softer after the December Producer Price Index report came in softer than expected. The main driver this Tuesday remains comments from team memberes from the upcoming President-elect Donald Trump administration, who disclosed that they are considering a very slow month-to-month implementation of tariffs to avoid an inflationary shock, Bloomberg reported. Meanwhile markets are on edge over any comments from President-elect Donald Trump himself on the matter.
The US economic calendar picks up in importance on Tuesday, with the Producer Price Index (PPI) release as an appetizer for the more important Consumer Price Index (CPI) on Wednesday. Every number in the report, both Headline and Core gauge for the monthly and yearly time frame came in substantially softer than expected. This should ease expectations a touch for the upcoming CPI release on Wednesday.
Source: Fxstreet