Initial jobless claims and PPI coming up next | Forexlive

The US dollar is in freefall against the euro today and Treasury yields are sliding further. I suspect a big part of that is angst about a war in the Middle East but it’s a mixed bag.

The focus will shift back to the US economy at the bottom of the hour with the weekly jobless claims report and the producer price index. Claims rose to 247K last week, which was the highest since October. A further rise would emphasize a slowing economy and add to the case for Fed rate cuts. Year-end pricing is now at 52 bps, up from 42 before this week’s CPI report.

On the subject of inflation, we get May PPI at the same time. The consensus is +2.6% y/y and +3.1% y/y ex-food and energy. There’s likely a bias to the downside built in after CPI and generally, this report is less of a market mover when it’s released after CPI.