Recommended by Richard Snow\n<\/p>\n
Introduction to Forex News Trading\n<\/p>\n
May’s monthly PPI fell to -0.3% after consensus had initially expected a 0.1% drop. The year-on-year PPI fell significantly, from 2.3% to 1.1%, while the core measure fell from 3.2% to 2.8%, also beating estimates of 2.9%.<\/p>\n
Customize and filter live economic data using our DailyFX <\/span>economic calendar<\/span><\/p>\n <\/a><\/p>\n Lower inflation appears to have arrived just in time for the Fed, which appears to be favoring a no-hike scenario ahead of the FOMC statement due at 7pm today. The committee has previously noted that they will take into account past rate hikes, lag effects and other developments to determine whether additional tightening will be appropriate. Additionally, Fed Chairman Jerome Powell indicated last month that the current rate level is within “tightening” territory, a further indication that the Fed believes it has earned the right to slow the cycle rate rise.<\/p>\n Markets continued to move in the direction of recent momentum, with EUR\/USD and GBP\/USD higher as both the ECB and BoE will continue to raise interest rates at some point in which the Fed could effectively be on pause.<\/p>\n EUR\/USD has been clawing back losses experienced throughout the month of May and the move has continued with increased added intensity after factory gate prices eased. Lower inflation lends itself to a tighter terminal rate in the US, while the ECB continues to call for hikes with core inflation still elevated. <\/p>\n Chart EUR\/USD 5- Min<\/span><\/p>\n Source: TradingView, powered by <\/span>Richard Snow<\/span><\/p>\n Likewise, the cable has shown a similar path, but has fared much better than the euro, as the falls have not been as severe. In late May, the cable rallied and today’s inflation data has lifted the pair into the resistance zone around 1.2700, an immediate test for the bullish resolution.<\/p>\n GBP\/USD 5 minute chart<\/span><\/p>\n Source: TradingView, powered by <\/span>Richard Snow<\/span><\/p>\n — Written by Richard Snow for DailyFX.com<\/span><\/p>\n Contact and follow Richard on Twitter:<\/span> <\/span>@RichardSnowFX<\/span><\/a><\/p>\n element within element. Surely this is not what you wanted to do! Instead, you load your application’s JavaScript package inside the element. ![\"image2.png\"](\"https:\/\/a.c-dn.net\/b\/3yNpJD\/image1.png\" "\\"\\"")
<\/a><\/p>\n<\/a><\/p>\n