PPI data slightly undershoots but FX not that engaged
US PPI data follows up, coming slightly on the low side of consensus, -0.1 to -0.2pp surprises on most headline measures.
That sees US2yr yields slip back to the low side of yesterday’s bar seen out of CPI, but it's fair to say the FX market ‘isn’t playing’ at the moment and more inclined to sit the current data out. Maybe the fact that the CPI dollar dip really didn’t hold yesterday adds to the inertia.
Big picture the focus is rather more, well, big picture, in terms of how geopolitical events and data plays out over the course of the next month or so into the next meeting date.