Published: 2024-11-14T14:02:50.000Z
USD, EUR, JPY flows: USD gains after PPI
Senior FX Strategist
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PPI only marginally stronger than expected but the USD remains firm. However, furtehr gains may be more difficult, particularly against the JPY
No real surprise in US PPI. Although the y/y rates for both headline and core were slightly above consensus, the m/m rates were in line. There is insufficient difference to have a meaningful influence on policy. Nevertheless, US yields and the USD are both marginally firmer. We continue to focus on the 156.67 retracement level in USD/JPY as a potential sell area.
There may be more downside potential for EUR/USD, with yields spreads still suggesting downside risk. However, the 1.0448 October 2023 low is the initial target and may offer short term support.
