Oddbean

Dollar gains on hawkish Fed, even as inflation cools ========== The dollar strengthened despite weak U.S. producer price data for May, following a hawkish Federal Reserve meeting. U.S. producer prices fell unexpectedly in May, with core prices remaining flat. The Federal Reserve's stance on interest rates also influenced the dollar's performance. The dollar gained on Thursday despite a soft U.S. producer price report for May, after the Federal Reserve adopted a hawkish tone at the conclusion of its meeting on Wednesday. Data on Thursday showed that U.S. producer prices unexpectedly fell in May, with the headline (PPI) dropping 0.2% last month after advancing by an unrevised 0.5% in April. Core prices were flat, after also seeing a 0.5% increase the prior month. It comes after May's U.S. (CPI) on Wednesday was softer than economists had expected, prompting a sharp sell-off in the greenback. Combined, the CPI and PPI releases make it likely that Personal Consumption Expenditures (PCE), the Fed's preferred inflation measure, will also show softening price pressures. The dollar is likely to remain supported as Fed policy contrasts with more dovish international central banks. #Dollar #FederalReserve #Inflation #ProducerPrices #InterestRates https://m.economictimes.com/markets/forex/dollar-gains-on-hawkish-fed-even-as-inflation-cools/articleshow/110982439.cms