USD flows: USD firmer despite softer PPI

The USD has gained ground after the US PPI data, even though the numbers came in on the soft side of expectations. The numbers helped to produce some modest gains in equity futures which may have contributed to the firmer USD, but there has also been some rise in US yields and a fall in German yields on the day which is weighing on the EUR. This may reflect concerns about US tariffs on Europe, while GBP is benefiting from perceptions that the UK is less under threat from tariffs than the Eurozone, so GBP has gained some ground against the weaker EUR.