US Data Fails to Offer Punch for Greenback
The latest inflation data out of the US briefly helped to send the greenback higher against the safe haven Japanese Yen, but otherwise failed to provide a sustainable lift. According to the US Bureau of Labor Statistics, producer price inflation unexpectedly rose in March, both on a month-over-month and a year-over-year basis, beating analysts predictions. Core producer price inflation, which excludes volatile components like food and energy, was unexpectedly higher in March on a monthly basis, and met analysts' forecasts on an annual basis which meant a slight decline (to 2.4%) from the previous reading of 2.5%. The US Labor Department also reported that weekly unemployment benefit claims were down, while the previous week's figures were revised higher.
As reported at 10:19 am (JST) in Tokyo, the USD/JPY was trading at 111.7580 Yen, a gain of 0.1183%; the pair has ranged from a low of 111.587 Yen to a peak of 111.816 Yen. The EUR/USD was trading at $1.1283, up 0.2408%, moving off the session high of $1.12919. The AUD/USD was trading at $0.7129, up 0.0716%, while the NZD/USD was trading at $0.6724, down 0.0297%.
Central Bankers Express Growth Concerns
In the US on Thursday, several key members of the US Federal Reserve Board spoke separately but maintained similar stances. Overall, the members believe that the Fed's benchmark rate is appropriate and they expect a slowdown in the economy, especially given the yield curve inversion recently seen in US Treasuries. On Wednesday, Mario Draghi, head of the ECB, expressed his own concerns over a slowdown in the EU economy.