US Producer Prices see record fall in October. USD mixed in forex trading today. | CountingPips Forex Blog

November 18, 2008 - Forex Economic News

US Producer Prices see record fall in October. USD mixed in forex trading today.

The U.S. Producer Price Index released in a report by the Department of Labor fell the most on record in October as energy costs continued to decline and eased inflation on finished goods. Producer prices decreased by a more than expected 2.8 percent in the month of October following a decrease of 0.4 percent in September. Producer prices have now fallen for three months in a row after rising for seven consecutive months. The annual rate of USD mixed in forex trade change through October showed that producer prices were 5.2 percent higher than October of 2007 after September's annual rate registered an 8.7 percent increase. Market forecasts were expecting monthly producer prices to decline by 1.8 percent and the annual rate of increase to register 6.2 percent.

Helping to contribute to the lower ppi in October was the cost of energy which decreased by 12.8 percent for the month after decreasing by 2.9 percent in September. Gasoline prices showed a staggering 24.9 percent drop in October after a 11.7 percent decline in September. Food prices decreased by 0.2 percent in October following a gain of 0.2 percent in September.

Core producer prices, excluding food and energy prices, rose by 0.4 percent in October following a rise of 0.4 percent in September and surpassing market expectations of just a 0.1 percent gain. On an annual basis, core producer prices advanced by 4.4 percent in October compared with an increase of 4.0 percent in September and above expectations of a 4.0 percent increase.

Forex - US Dollar mixed in trading against most majors.

The U.S. dollar has been generally mixed in forex trading today after spending most of the U.S. morning down against the major currencies. The dollar has pared its early losses today to trade virtually unchanged against the euro and the pound in the afternoon of the US trading session at 1:28pm ET. The dollar has gained against the Canadian dollar after falling below 1.2200 earlier today to trade at 1.2325. The dollar has advanced verses the Swiss franc to trading at 1.2026 francs per dollar after opening today trading at 1.1978. The New Zealand dollar has declined verses the dollar after touching a high of 0.5552 today and the NZD/USD currently trades at 0.5491. The Australian dollar has also pared most its gains verse the USD as the AUD/USD trades at 0.6480 after opening today at 0.6460. Verses the Japanese yen the dollar has been on an up and down ride today as the USD/JPY trended lower then spiked higher and is currently trending down again. The USD/JPY trades at 96.48 after opening the day at 96.64.

USD/CHF Chart - The US Dollar has advanced today against the Swiss Franc and is trades at its highest level verse the franc since September 2007(Daily Chart).

Today's Forex & Currency Trading Chart

tags: producer prices, inflation, forex market trading

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