Key points:
- Euro zeros in on $1.0940
- US dollar wobbles after inflation
- Consumer prices shake forex market
European currency remains pressured, nursing a deep 2.5% loss from the past 11 trading days. US PPI data comes up next.
- The
EURUSD pair kicked off Friday trading on an upbeat note as it clawed back some of its Thursday losses. The exchange rate got heavily pressured yesterday when the US released its consumer price index report for September. Turns out, inflation didn’t exactly obey investor expectations — consumer prices grew more than expected with a 2.4% increase year-over-year, against 2.3% eyeballed by analysts. - There was an initial pump in the dollar’s valuation at the news drop but that faded rather quickly. Shortly after, the greenback was losing points against major competitors on the forex board. It did manage to chip away at the euro, stripping the exchange rate down to $1.09 — a two-month low. On Friday, the major currency pair was floating at $1.0940, hugging the flatline as markets awaited more economic data.
- Producer price index, or PPI, will be released today and traders anticipate an increase of 0.1% month-over-month for September. Annual PPI growth is expected to come in at 1.6%. The PPI is important to traders and the Federal Reserve because it measures inflation at the wholesale level. It tracks the prices at which producers sell their goods and services, from raw materials to finished products.
