HiFX: Foreign Exchange Specialists

• Headlines

August 19, 2008

U.S. PPI rose 1.2%m/m in July following the trend seen over the last couple of months and leaves the headline annualized reading standing at 9.8%, a 27 year high.  Excluding food and energy producer prices climbed 0.7%m/m in July, taking the year on year core reading to its highest level since 1991.  The persistence of elevated inflationary pressures coupled with weaker growth leaves the market unsure as to the direction of US monetary policy.  As a result immediately following the release the market saw both bouts of USD purchasing and selling.