Contrary to the forecasts the PPI index was announced more than expected

The Producer Price Index (PPI) measures the change in prices of goods sold by producers. This index is the consumer price inflation index, which accounts for most of inflation. A release of higher than expected numbers should be considered positive/bullish for the USD, while a release of lower than expected numbers should be considered negative/bearish for the USD.

The Consumer Price Index for the United States was released on January 18 at -0.5%, while it had been expected that this index would be -0.1%. It is also worth noting that the value of the last period of this index was 0.2%.

After the release of data that was below expectations for this index, and the main focus of the markets on the retail sales data, which was released with a sharp decline compared to expectations, we saw a decline in the value of the dollar against other currencies.