U.S. PPI (final demand) rose 0.4% in June with the core rate up 0.2% U.S. PPI (final demand) rose 0.4% in June with the core rate up 0.2%. There were no revisions to May data that showed a 0.2% headline decline and a 0.1% dip in the ex-food and energy component. Goods prices increased 0.5% last month after dropping 0.2% in May, with energy prices rebounding 2.1% and food prices falling 0.2%. Services costs increased 0.3% versus May's -0.2% with trade prices rising 0.2% and transportation/warehousing costs up 0.3%.
FX Action: The dollar ticked up ever so slightly FX Action: The dollar ticked up ever so slightly following the hotter than consensus headline PPI print, and the in-line core reading. EUR-USD eased a few points to intra day lows of 1.3526, as USD-JPY inched to 101.79 highs. Equity futures have held their bid, while Treasury yields firmed a touch.
Futures remain higher following producer prices report Stock futures remain higher following the release of the producer prices report. The data showed that prices rose 0.4% overall versus expectations of an increase of 0.2%. The core reading, which removes food and energy, rose 0.2% versus expectations of an increase of 0.2%.
U.S. PPI Preview: U.S. PPI Preview: June PPI is expected to rise 0.2% (median 0.2%) with a flat core index figure (median 0.2%). The 0.2% May PPI drop with a 0.1% core price decline unexpectedly trimmed the outsized 0.5%-0.6% gains over the prior two months for both measures, thanks to larger than expected downside May corrections in all the major aggregates after prior big overshoots. The trade price report revealed the expected June drop in food export prices and boost in oil import prices that allowed divergent headline swings, though price declines for natural gas depressed the ex-oil and ex-food trade price measures.
Dallas Federal Reserve Bank President to speak on monetary policy Dallas Federal Reserve Bank President Fisher speaks on "Monetary Policy and the Maginot Line" in a meeting being held at the Annenberg School for Communication in Los Angeles on July 16 at 12 pm.