U.S. Dollar/Canadian Dollar Futures Market News and Commentary
The dollar index (DXY00) on Thursday spent most of the day on the downside and consolidated just mildly above Wednesday’s 5-week low. The dollar index was slightly lower late Thursday afternoon.
The dollar on Thursday was undercut by the weaker-than-expected U.S. PPI report, which added to Wednesday’s CPI report in suggesting that U.S. inflation might have peaked and that the Fed might be able to limit its rate-hike ambitions.
Thursday’s July final-demand PPI report of -0.5 m/m and +9.8% y/y was weaker than market expectations of +0.2% m/m and +10.4% y/y. On a year-on-year basis, the July PPI report of +9.8% y/y was down by -1.5 points from June’s +11.3% y/y and was -1.8 points below March’s peak of +11.6% y/y.
Meanwhile, the July core PPI report of +0.2% m/m and +7.6% y/y was weaker than market expectations of +0.4% m/m and +7.7% y/y. On a year-on-year basis, the July core CPI of +7.6% y/y fell by -0.6 points from June’s +8.2% and was -2.1 points below March’s p... Read more