US Producer Prices Rose as Expected in August

The US PPI data coming in as expected provides a moderate signal that inflation pressures are under control; this is a neutral-positive reading for the Fed's interest rate path. However, GOOGL's technical picture is weak: the price is below the SMA20 and SMA50, RSI at 38 is weak but not oversold, and MACD is negative below the signal line. The 24-hour decline of 2.2% confirms short-term selling pressure. The news alone is not a strong directional trigger; although reaction buying may be seen in 1-3 days, a close above the 334-337 band is required for a trend reversal. Therefore, I expect a neutral, slightly downward bias in the short term.

The increase in US Producer Prices, as expected, indicates that inflation pressures persist and could create a perception that the Fed might delay interest rate cuts. This could have a slightly positive effect on the DXY in the short term. Technical indicators also support this view: RSI at 58 is neutral-positive, MACD is above the signal line, and the price is above the 20 and 50-day moving averages. However, the impact may be limited because the data came in line with expectations and the market may have largely priced it in. Nevertheless, a moderate upward movement in the DXY is possible in the short term.