US wholesale inflation slowed more than expected in June, easing pressure on the Federal Reserve to hike rates this month.
The US Dollar Index dropped 0.5% to near 100.40 after June’s Producer Price Index fell 0.3% month-over-month, below the 6.2% annual forecast. Core PPI rose 0.2% MoM and 4.7% YoY, also missing estimates.
May’s annual PPI stood at 6.1%, while economists had expected a 6.2% rise for June. The softer data aligns with recent Consumer Price Index trends, reinforcing expectations the Fed may pause rate hikes in July.
EUR/USD climbed 0.45% to 1.1475 on broad dollar weakness, while Spain’s harmonized inflation held steady at 3.6% YoY in June.