After the market watched the US consumer inflation data on Wednesday, the focus shifted to US producer inflation in the New York session yesterday.
As with the rising consumer inflation reading, the US monthly producer price index (PPI) also recorded an increase to 0.4% for January compared to the forecast of 0.3%, but lower than the previous month's 0.5% which was revised up from 0.2%.
The annual PPI reading also increased to 3.5% compared to the market forecast of 3.2% which shows an increase in prices of goods at the producer level.
However, as in the previous situation, the US dollar continued to trade weak after the data was published until the end of the session.
The market focus shifted to the next data today (Friday) which is US retail sales for January with the forecast of a declining figure.
Investors who are wary of changes in market sentiment while watching the press conference held by President Donald Trump yesterday to talk about tariffs.
He considered implementing tariffs on countries that use the value-added tax system, warning that any action taken by any country would be retaliated against.
Trump also said that the European Union's (EU) action to reduce vehicle export tariffs to 2.5% was a big victory for the US.
For the BRICS countries that have turned away from the US dollar, Trump threatened a 100% tariff.
A meeting with Russia and Ukraine will be held next week in Saudi Arabia.
