DXY After PPI Report

2026-08-13 13:04 By Agna Gabriel 1 min. read

The dollar index fell to around 99.9 on Thursday after softer-than-expected US producer inflation eased concerns over renewed price pressures and strengthened expectations for a cautious Federal Reserve policy stance.

The Producer Price Index was unchanged in July, missing forecasts for a 0.2% increase, while recent consumer price data also pointed to moderating inflation.

As a result, traders increased bets that the Fed will leave interest rates unchanged at its September 15-16 meeting, with markets pricing around a 65% probability of a hold.

The latest figures suggest that the initial inflationary impact of the Middle East conflict and higher energy costs may be fading.

However, renewed tensions in the region continue to pose risks to the inflation outlook.

Meanwhile, weekly jobless claims increased but remained historically low, although recent employment data indicated that the US labor market has been weaker than previously estimated.



News Stream
DXY After PPI Report
The dollar index fell to around 99.9 on Thursday after softer-than-expected US producer inflation eased concerns over renewed price pressures and strengthened expectations for a cautious Federal Reserve policy stance. The Producer Price Index was unchanged in July, missing forecasts for a 0.2% increase, while recent consumer price data also pointed to moderating inflation. As a result, traders increased bets that the Fed will leave interest rates unchanged at its September 15-16 meeting, with markets pricing around a 65% probability of a hold. The latest figures suggest that the initial inflationary impact of the Middle East conflict and higher energy costs may be fading. However, renewed tensions in the region continue to pose risks to the inflation outlook. Meanwhile, weekly jobless claims increased but remained historically low, although recent employment data indicated that the US labor market has been weaker than previously estimated.
2026-08-13
Dollar Steadies Ahead of PPI Data
The dollar index steadied around 100 on Thursday after experiencing heightened volatility in the previous session, as investors looked ahead to July’s producer inflation report for further clues on recent price trends. Data released Wednesday showed US consumer inflation slowed for a second consecutive month to 3.4% in July, while rising just 0.1% from the previous month. Markets now see around a 40% chance of a 25 basis point rate hike from the Federal Reserve in September, down from nearly 50% a day earlier. Meanwhile, investors continued to assess prospects for a deal to reopen the Strait of Hormuz, although escalating rhetoric between the US and Iran amid deadlocked negotiations reduced the likelihood of an imminent agreement. Elsewhere, traders remained alert for potential intervention to support the yen as the currency approaches the 160 level against the dollar.
2026-08-13
DXY Retreats After Inflation Data
The dollar index eased to around 99.9 on Wednesday after US consumer prices rose broadly in line with expectations in July, easing concerns over imminent Federal Reserve rate hikes. Core consumer prices, excluding food and energy, rose 0.2% month-on-month and 2.5% year-on-year, matching the slowest annual pace since March 2021. Overall, consumer prices increased 0.1% from June and 3.4% from a year earlier. The moderation in inflation, following last week’s weaker-than-expected jobs report, could ease pressure on the Fed as policymakers balance price stability against risks to employment. The latest figures also provided some relief amid elevated oil prices and geopolitical uncertainty. Meanwhile, tensions over the Strait of Hormuz remained high, with President Donald Trump claiming the US had “total control” of the waterway as Washington and Tehran remained locked in negotiations over its reopening.
2026-08-12