U.S. producer price index is expected to have remained the same in October. PPI, in the prior month rose for the first time since June. The rise of 0.2percent was totally due to the service sector, while prices for food and energy goods fell. On a year-on-year basis, the producer price index dropped 2.6 percent; however, the underlying trend continues to be strong. Stripping food, energy and trade services, the preferred measure of core PPI was unchanged at 2.9 percent.
“Producer prices likely rose another 0.2 percent in October. That should be enough to push the year-ago rate to 2.5 percent”, stated Wells Fargo in a research report.
Input costs have risen in recent months, implying further price pressure. The share of manufacturers reporting higher input costs continue to be elevated, while the cost of intermediate service and goods is still running above finished goods and services, said Wells Fargo.
At 19:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was neutral at -39.8785. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex