Forex
Home›Forex›Major Pairs›PPI relief fades as oil supply risks resurface ahead o…
PPI relief fades as oil supply risks resurface ahead of Europe
June US PPI stayed softer than expected, but energy led the downside while core pressures remained sticky as Strait of Hormuz risks persist, keeping FX and global markets cautious.
Forexlive said June US PPI came in softer than anticipated, extending earlier relief for markets as inflation fears eased, though the move was largely tied to falling gasoline prices rather than broad-based cooling.
Even with weaker headline figures, the outlet noted that core producer price pressures had not cooled significantly, and that higher producer prices can continue to feed into consumer prices as they stay elevated year over year. It pointed to ongoing supply risk, citing the Strait of Hormuz as effectively closed, which could raise not only oil prices but also the costs of raw materials through supply chain disruption.
In global trading context, WTI crude was little changed at about $79.50, and US stocks finished higher, with the S&P 500 up 0.4% and the Nasdaq up 0.6%. Forexlive added that US futures were pointing to only slight gains of about 0.1% and described the near-term tone for European traders as pensive.
The piece also linked the cautious mood to interest-rate signals, noting that 2-year Treasury yields slipped to around 4.15% from near 4.30%, while the 10-year yield settled near 4.55%. It said that, for now, yields are not breaking higher sharply, providing some breathing room even as US-Iran tensions and oil market headlines remain a key watch item.
Latest closeWTI crude $80.18 ▲1.1%|Gasoline (RBOB) $3.100 ▼3.9%|S&P 500 7,572.40 ▲0.4%