US Dollar vs. US CPI Drop

The US dollar finished on a mixed note on Tuesday; being beaten by the euro, Swiss franc, British pound, and Japanese yen whilst growing against the product dollars. Whilst the currency did bring about a concrete rally throughout the US trading session, it finally was not sufficient to cover the US dollar’s severe losses occurred throughout the European trading session. US economic news was largely blended, as the Labor Department stated that US producer prices went up by 0.2 % in May, but this monthly increase did not stop the annual rate from dropping additionally to a almost 60-year low of -5.0 %. The plunge in the annual rate indicates that Wednesday's US CPI release may be likewise weak on a yearly base. Additionally, the Commerce Department informed that housing starts went up for the 1st time in 3 months by 17.2 % in May.