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FOREX: Greenback Follows Yields Lower as PPI Adds to Soft Inflation Picture

FOREX
  • Lower US yields in response to the PPI miss work against the USD, pressing USD/JPY toward overnight lows at 156.59. Nonetheless, markets are still comfortably off the post-CPI, pre-Fed lows printed yesterday at 155.72. 
  • Decent volume surge on today's PPI print, interestingly matching the activity seen in the 60 seconds following CPI, despite the more moderate move in spot (JPY futures see 5,100 contracts trade vs. 4,900 on CPI yesterday). 

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