The U.S. Dollar is trading in lower ranges against its G10 peers this morning ahead of Producer Price Index numbers being released at 8:30.
The month-over-month Final Demand figure is expected to print at 0.3%, and the year-over-year figure is expected to print at 2.6%. These would both be reductions from prior prints, thereby indicating that inflation is slowing down. We’ll also be receiving Chicago Purchasing Managers’ Index numbers at 9:45, which are expected to show economic expansion, but at a lower rate of expansion than last month.
The Federal Reserve Bank of Dallas released a report indicating that the correlation between oil and gas prices and U.S. inflation expectations is breaking down, largely as a result of tariffs, which makes this morning’s PPI print even more relevant in assessing potential policy moves from the Fed.
What to Watch This Week…
- Monex USA Online is always open
CAD ⇑
The Canadian Dollar is up against the Buck this morning ahead of Canadian GDP figures being released at 8:30. While GDP figures are expected to have a muted impact on price action, the Loonie remains particularly sensitive to geopolitical risk with regard to trade, especially USMCA fears.
GBP ⇓
The British Pound is the G10’s only loser versus the Greenback this morning after the ruling Labour party lost the by-election for the seat of Gorton and Denton in Greater Manchester to the Green party, with Reform UK getting the second highest number of votes. Labour coming third raises serious concerns about Prime Minister Keir Starmer’s fate. The Pound is feeling additional downside pressure from a weak consumer confidence survey.
