Lagging inflation continues to be the story of the U.S. economy. Core PPI reading showed a yearly dip in prices, the first since 2015. At this point, U.S. stocks are taking the news from a bearish perspective. For the first half-hour of trade, the DJIA DOW (-100), S&P 500 SPX (-15), and NASDAQ (-58) are firmly in the red.
This morning’s U.S. PPI report has certainly backed up Jerome Powell’s concerns about lagging inflation. Although the numbers show a slight increase on a monthly basis, the Core PPI figure has Wall Street talking. Here is a quick look at the data:
Event Actual Projected Previous
PPI(MoM, July) 0.2% 0.2% 0.1%
PPI(YoY, July) 1.7% 1.7% 1.7%
Core PPI(MoM, July) -0.1% 0.2% 0.3%
Core PPI(YoY, July) 2.1% 2.4% 2.3%
Gbp/Cad trend is buy
Support and Resistance:
1 Resistance 0.7034
2 Resistance 0.6996
3 Resistance 0.6962
1 Support 0.6897
2 Support 0.6853
3 Support 0.6829


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