SHANGHAI, Oct. 18 (SMM) – The US dollar index fell overnight, but base metals remained weak, and should diverge at lows today.
US September CPI before seasonally adjusted is expected to improve. Annualized US September PPI was better than expected, with the growth the biggest since December 2014. Core PPI was also in line with market expectations, meaning US inflation is on the rise. US five-year breakeven ratio also expects US consumer goods index will rise at a 1.54% pace, the highest since May.
The pound weakened at one point recently due to the Brexit issue, fueling concerns over UK’s economy. But UK’s inflation continued to strengthen, and is expected to remain strong in September. UK’s retail sales price index should also improve in September, which will bolster the pound.