US PPI Exceeds Expectations with 5.4% Annual Increase in August

The higher-than-expected US PPI indicates that inflation pressures persist, creating a perception that the Fed may delay interest rate cuts. This could create upward pressure on the DXY in the short term. However, technical indicators already point to an overbought zone; RSI is high at 73.7 and the price is above the SMA20 and SMA50. Therefore, upside potential may be limited and profit-taking could occur. Nevertheless, due to the news impact, DXY is expected to remain slightly upward biased within 1-3 days.

The US Producer Price Index (PPI) came in above expectations at 5.4%, indicating that inflationary pressures persist and heightening concerns that the Fed may delay interest rate cuts. This situation puts pressure on risk assets, supporting downward pressure on the S&P 500 (SPX). Technical indicators are already weak: the price is below the 20- and 50-day moving averages, and the RSI at 35 is near oversold territory but has not yet shown a reversal signal. The MACD is negative and below the signal line, confirming downward momentum. In the short term, support at 7600 is critical; below this level, selling could accelerate, but oversold conditions may also trigger buying interest.

The US Producer Price Index (PPI) increased by 5.4% year-over-year, exceeding expectations, indicating persistent inflation pressures and raising concerns that the Fed may delay interest rate cuts. This could create short-term downward pressure on the tech-heavy NDX, which is highly sensitive to interest rates. However, with the price just below the 20-day simple moving average (SMA20), above the 50-day SMA (SMA50), and the RSI in neutral territory, selling pressure may remain limited. The MACD staying below its signal line confirms weak momentum. Nevertheless, the impact of the news may be limited; the market may await more data on Fed policy.