Mixed bag for US Data Today


US headline PPI rose 0.2% in April, with the core rate up 0.1%, with the latter a little light. There were no revisions to March where there were respective increases of 0.6% and 0.3%. On a 12-month basis, prices were steady at 2.2% y/y, with the core rate also unchanged at 2.4% y/y. Good prices were up 0.3% from 1.0%, with energy rising 1.8% from 5.6%, while food prices fell -0.2% from 0.3%. Services prices were up 0.1% from 0.3%. PPI isn’t really a market mover, and this report won’t do the trick. The tame data is in line with the Fed’s views.

US initial jobless claims dipped 2k to 228k in the week ended May 4 after holding unchanged at 230k in the April 27 week. That left the 4-week moving average at 220.25k versus 212.5k. Continuing claims rose 13k to 1,684k in the May 4 week after rising 17k to 1,671k previously.

US trade deficit widened 1.5% to -$50.0 bln in March after narrowing 3.6% to -$49.3 bln in February (revised from -$49.4 bln). Exports increased 1.0% after the prior 1.2% gain (revised from 1.1%), while imports were up 1.1% following February’s 0.3% gain (revised from 0.2%). Excluding petroleum, the deficit was little changed at -$48.2 versus -$48.1 bln (revised from -$48.2 bln).  The data are pretty close to expectations and shouldn’t have much impact on GDP estimates.

The Dollar slipped slightly following the mix of data, where core PPI was a bit cooler, jobless claims above consensus, and the trade deficit barely wider than expected. EURUSD headed to 1.1200 highs from near 1.1190, while USDJPY dipped a few points to 109.79.


Stuart Cowell

Head Market Analyst

Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.