US Producer Inflation Rose in August

The rise in US producer inflation in August indicates persistent inflationary pressures, reinforcing expectations that the Fed may delay interest rate cuts. This could have a short-term upward effect on the DXY. Technical indicators support this view: although RSI at 73.7 is in overbought territory, MACD is positive and the price is above SMA20 and SMA50. However, due to the overbought signal and the possibility that the news is already priced in, it should be noted that the upward movement may be limited and profit-taking could occur. Nevertheless, the overall trend is upward.

The rise in US producer inflation in August signals persistent inflationary pressures, heightening concerns that the Fed may delay interest rate cuts. The S&P 500 fell 1.5% in the last 24 hours to 7,637.7, with its RSI at 35 approaching oversold territory. The MACD is negative and below its signal line, indicating weak short-term momentum. The price is trading below its 20-day and 50-day simple moving averages, pointing to a deteriorated technical outlook. Considering the news flow, downside risks may persist in the 1-3 day horizon, but oversold conditions could lead to limited bargain hunting.