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Dollar eases after softer US PPI supports major currency gains and gold

The US wholesale inflation report showed the headline PPI falling 0.3% month over month in June, while the annual rate slowed to 5.5%.

Reported · Written up by our desk · Major Pairs

FXStreet reports that the US Dollar Index, DXY, fell 0.5% toward 100.40 as softer-than-expected US wholesale inflation reinforced signs that price pressures are easing. The news flow highlighted that the headline Produce Price Index declined 0.3% month over month in June, and the annual rate slowed to 5.5%, below the 6.2% forecast.

FXStreet also noted that core PPI rose 0.2% month over month and 4.7% year over year, both missing expectations. The data reduced pressure on the Federal Reserve to raise interest rates at its July meeting, and Fed Chair Kevin Warsh said recent inflation figures are an imperfect measure of underlying inflation.

In currency trading, FXStreet said EUR/USD moved toward 1.1475, up 0.45%, driven mainly by broad Greenback weakness. It also reported that GBP/USD rallied toward 1.3550, gaining more than 1%, and that USD/JPY traded lower near 162.00 as the yen recovered alongside the dollar’s retreat.

Latest closeGold $4,058.20 ▲1.5%|EUR/USD 1.142 ▲0.2%|USD/JPY 162.23 ▲0.2%

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