Calm After the Storm Brings Currency Volatility Down
Treasury yields are stabilising and the dollar is recovering ground after losing a little altitude during yesterday’s session when a closely-watched input cost index climbed by less than expected. The producer price index for final demand rose just 0.2 percent month-over-month in March, with a third consecutive increase in services costs obscuring a cooling in many of the components that go into the Fed’s preferred inflation indicator. Taken in combination with Wednesday’s consumer price print, the data suggest that the personal consumption expenditures index will rise somewhere between 0.2 and 0.3 percent on a month-over-month basis when the next update...