Forex: Daily wrap-up: US June PPI up 0.8% m/m

on Jul 12, 2013


The Spanish Consumer Price Index m/m rose 0.1 percent in June, against analysts’ expectations for an increase by 0.2 percent, the same as in May.
The Italian Consumer Price Index also rose in June – by 0.3 percent, matching forecasts.
Eurozone industrial production for May m/m came out as a drop of 0.3 percent, more than the expected 0.2 percent. The previous period showed a rise of half a percent.

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In the US, the Producers Price Index for June m/m came out up 0.8 percent, compared to the forecast rise of 0.5 percent. The core PPI m/m (excluding food and energy) was up 0.2 percent in June, up on May’s 0.1 percent but matching expectations.
The University of Michigan in collaboration with Thomson Reuters today released its preliminary consumer sentiment for the current month, showing a drop to 83.9 points from the prior month’s revised 84.1. Analysts had been expecting 85.3. And the UoM announced the July inflation expectations for the next 12 months as 3.3 percent, slightly up on the forecast 3.1 percent and the prior month’s 3.2 percent.

Later today, at 18.00 BST, FOMC member James Bullard is scheduled to speak about central banks at the Rocky Mountain Economic Summit, in Jackson Hole, Wyoming.
The only significant economic release from the UK today was the Conference Board’s. Leading Index (a combined reading of seven economic indicators relating to production, new orders, consumer confidence, stock prices, and interest rate spreads). The index grew in May by 0.4 percent, as against the prior 0.2 percent rise.

Japan’s Ministry of Economy, Trade and Industry today reported on the revised industrial production for May m/m, up by 1.9 percent, as against the expected two percent.
Shortly after came the Bank of Japan’s latest monthly report, a document which typically contains the statistical data that the BOJ Policy Board members use when making the latest interest rate decision and which invariably provides detailed analysis of current and future economic conditions from the bank’s viewpoint.

The new report states that Japan’s economy has started to recover moderately and is expected to continue doing so, thanks to resilience in domestic demand and the uplift in trading partner economies, along with accommodative financial conditions.
The Australian Bureau of Statistics today reported on May home loans m/m. The number of new loans granted for the purchase of owner-occupied homes rose by 1.8 percent, missing the expected 2.3 percent increase though up on the revised prior 1.2 percent growth.
Chinese Finance Minister Lou Jiwei indicated in Washington DC today that the PRC’s economic growth would slow to seven or even 6.5 percent this year, below the government’s target of 7.5%. He also opined that the Chinese economy would not suffer from the slower growth, which was for a necessary by-product of the reforms being undertaken to stimulate the economy.
Yesterday LME copper prices rose by 3.2 percent to $6995.5/MT and aluminium rose by 2.2 percent to $1800.5/MT.

The economic calendar didn’t offer any economic releases from Canada today.
The pair has spent the day so far within a 46-pip range. The quote is currently at 1.0390, a 0.15 gain for the day to this point.
Switzerland was also absent from the calendar today and the USD/CHF has mostly been driven by US releases.
The pair thus far today has been moving within a 52-pip range, with the price currently back at the day’s opening level of 0.9475.


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