Weak US Producer Price Index means Fed in no rush to raise rates

The US dollar recovered losses made on Thursday after it tumbled on data showing US producer prices fell in April.

The Producer Price Index (PPI) dipped 0.4 percent last month from March. That compared with forecasts that prices would rise 0.1% on the month. This was the third decline this year. The PPI increased 0.2 percent in March.

This indicates that there are no inflationary pressures and would support views that the US Federal Reserve is in no rush to not raise interest rates soon and is not expected to start the hiking cycle until September at least.

In the 12 months through April, producer prices fell 1.3 percent, the biggest year-on-year decline since 2010, after declining 0.8 percent in March. Economists had forecast the PPI rising 0.2 percent last month and falling 0.8 percent from a year ago.

The dollar plunged against the yen after the PPI data, falling to 118.93 yen from an earlier high of 119.22. It has since recovered and rose early on Friday to 119.50.

The post Weak US Producer Price Index means Fed in no rush to raise rates appeared first on Forex Circles.

Source:: Weak US Producer Price Index means Fed in no rush to raise rates