The US dollar has all the chances to resume the interrupted growth on the background of positive data on consumer inflation, the more publicized on Thursday, the values of the producer price index (PPI) were higher than the forecast.
Yesterday, data on manufacturing inflation in the US were published, which turned out to be higher than expectations and increased the likelihood that the values of consumer inflation, which are already out today, can also be much more positive. In accordance with the presented values, the producer price index (PPI) in annual terms jumped to 2.6% compared to the previous value of 2.4%, although it was expected that the figure would grow to 2.5%. The monthly value of the indicator also turned out to be positive and showed a 0.4% rise in September, compared with a 0.2% rise in August.
The basic value of the producer price index (PPI) also increased. The annual value of the indicator jumped to 2.2% against the forecast of 2.0% growth. In September, the index significantly increased by 0.4%, than it was in August, where growth was modest 0.1%.
It should also be noted the data on the number of applications for unemployment benefits in the US over the past week, which came out at 234 000, thus confirming a stable positive dynamics in the US labor market. But the previous value was revised downwards to 258,000, which is also positive.
Back on the data published today on consumer inflation. According to the forecast, the annual value of the producer price index (CPI) may rise to 2.3% compared with the previous period under review, where the increase was 1.9%. It is also assumed that the monthly value for September may increase by 0.6% compared to an increase of 0.4% in August. In addition, the base consumer price index is also expected to rise to 1.8% yoy, down from 1.7% earlier, and this month's figure should add 0.3% against 0.2%.
Also today, data on the volume of retail sales will be made public. It is expected that they will rise by 1.7% in September against a decline of 0.2% in August. If they are not worse than predictions, and inflation data will be better than expected, you can hope for a local increase in the US dollar.
Forecast of the day:
The EUR/USD pair is trading at 1.1825, the breakthrough of which will lead against the background of positive news from the US to its further drop to the level of 1.1700.
The EUR/GBP pair fell below 0.8910-0.8900, which could cause its further fall to 0.8755.
