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.
Head Market Analyst
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