USD rules. Overview for 17.02.2023

EURUSD falling has sped up. The current quote is 1.0640.

Yesterday investors got one more confirmation of an increase in the US inflation pressure, and they expressed it enthusiastically.

The PPI in January grew by 0.7% m/m instead of 0.4% and after a decline by 0.3% m/m. As for the decline year-by-year, it turned out slower than expected. The base index grew by 0.5% m/m instead of 0.3%.

Hence, industrial inflation is speeding up. This result is in line with what the market has already seen (the decrease in retail sales and local evidence of an increase in consumer prices). For the Federal Reserve System, this might be a trump to be used in support of the trend on increasing the interest rate.

Naturally, the USD got stronger. Today the macroeconomic calendar is rather empty, and the local trend should remain in force.