US data better than expected on all fronts
This afternoon's release of PPI was somewhat redundant given the inflation report seen yesterday, though the higher than forecast rise of 0.6% does suggest positive inputs going forward. The annualised rate is now 2.2% vs 1.9% projected, with core PPI coming in at 2.4% as expected.
Adding to this, we saw the weekly jobless claims number come in below the 200k mark, printing 196k vs 211k and this represents a multi-decade low to underpin the strong labour market in the US at the moment.
We have seen some modest USD strengthening this morning, though as we have already covered, ranges and movement is extremely tight, and we put this down to a market already long USDs.
EUR/USD will likely continue to find support ahead of 1.1200 on a move lower, and so far, the mid 1.1200's are containing any move sellers can generate.
USD/JPY has also pushed up to around 111.30, and this marginally takes out the highs seen yesterday.
Elsewhere, Cable is in limbo until we get some fresh news on Brexit, though we have seen a notable move higher in USD/CAD which is now eyeing 1.3400 again.