US: Annual PPI drops to 9.8% in July vs. 10.4% expected

• Annual PPI in US fell at a stronger pace than expected in July.
• The dollar stays under bearish pressure with the DXY dropping below 105.00.

The Producer Price Index (PPI) for final demand in the US declined to 9.8% on a yearly basis in July from 11.3% in June, the data published by the US Bureau of Labor Statistics revealed on Thursday. This print came in lower than the market expectation of 10.4%. 

The annual Core PPI fell to 7.6% from 8.2%, matching the market expectation. On a monthly basis, the Core PPI fell by 0.5% following June's 1% increase.

Market reaction

The dollar came under renewed selling pressure with the initial reaction and the US Dollar Index was last seen losing 0.4% on the day at 104.82.