June US producer prices fell more than expected, reinforcing expectations of Federal Reserve interest rate cuts later this year.
The US Dollar Index (DXY) declined 0.5% to near 100.40 after June’s Producer Price Index (PPI) dropped 0.3% month-over-month, missing forecasts. The annual PPI slowed to 5.5%, below the expected 6.2%, signaling easing inflation pressures.
May’s PPI had risen 0.1% MoM, while the annual rate stood at 6.2%. The softer-than-expected print adds to recent data suggesting cooling price growth, bolstering arguments for Fed policy easing.
Major currencies and gold gained against the dollar following the release, reflecting shifting market expectations for monetary policy.