Rebounding producer prices lift the dollar
The dollar is set to end the week on a slightly stronger note after July’s producer price report solidified expectations for a continued hawkish bias from Federal Reserve policymakers – even as other indicators point toward a cooling in inflation pressures. Yields are modestly higher across the front end of the Treasury curve, equities are seeing outflows, and risk-sensitive currencies like the Australian and Canadian dollars – along with the Mexican peso – are inching lower against the greenback. North America US producer prices climbed more than expected in July, putting pressure on policymakers to avoid sending the “all clear”...