Both the US Producer Price Index (PPI) and US retail sales fell short of expectations. The 10-year US Treasury yield fell further to around 3.42%. Reactions to dollar selling are spreading. The dollar/yen fell to around 128.15 at one point and was pushed back to near the previous day’s close. The euro dollar rose to the 1.0860 level at one point. GBP/USD extended its highs to the 1.2421 level.
The December US PPI was +6.2% year-on-year, well below the market forecast of +6.8%. The core year-on-year growth rate was also +5.5%, below market expectations of +5.6%. December US retail sales fell 1.1% month-on-month and 1.1% month-on-month excluding auto sales, both falling short of market expectations.
Today is the USD selling perspective. After the Bank of Japan Governor Kuroda’s press conference, USDJPY, which had recovered to the 131 yen level, has already fallen to the 127 yen level.
