The US greenback is below some promoting strain, falling round 20 pips for the reason that PPI report.
The info was a contact comfortable however the headlines spotlight disinflationary strain within the pipeline with the m/m quantity flat following a 0.4% decline in October. Given the declines in vitality costs, December will certainly be destructive as properly.
USD/JPY has fallen to 145.23 from 145.65 earlier than the information:
Treasury yields are decrease, led by the entrance finish. US 2s are down 5.5 bps to a session low of 4.67%, all of it since PPI. That is an aggressive transfer forward of the FOMC in a couple of hours however highlights a market that is satisfied the Fed will ultimately lower charges.
I additionally surprise if there’s some broader yen shopping for underway right here and that is weighing on the greenback.
