PPI in focus after CPI surprise

U.S. Market

Following February’s softer-than-expected inflation data, market attention swiftly shifts to the Producer Price Index (PPI), a key gauge of wholesale price trends. While Tuesday’s CPI data provided a momentary lift to sentiment, PPI could reveal lingering price pressures within the business sector.

Labor market data is also on the radar today, with weekly jobless claims expected to come in slightly above the previous print of 221K, with a forecast at 226K. Any deviations from expectations could influence near-term Fed rate expectations.

European Markets

In Europe, investors will be watching fresh industrial production figures, which are expected to show a monthly rebound. A stronger-than-expected reading would reinforce ECB President Christine Lagarde’s view that the Eurozone remains on a stable recovery path.

Currencies

The EURUSD remains under pressure, as markets await clarity on inflation trends and economic resilience within the bloc.

Among G10 currencies, the Japanese yen is emerging as the strongest performer, after remarks from Bank of Japan Governor Kazuo Ueda, who expressed optimism about rising wages and improving domestic demand.

Conversely, the Australian dollar is under selling pressure, against the USD, weighed down by concerns over its exposure to fresh U.S. tariffs on steel and aluminum.

Commodities

Gold continues its upward trajectory, extending gains for a third consecutive session and touching a two-week high. A weaker dollar, ongoing expectations of Fed rate cuts, and persistent trade policy uncertainty are fueling demand for the safe-haven metal. Investors are now closely eyeing the upcoming PPI report, which could influence short-term price action.

Oil markets are seeing a modest uptick, with WTI crude climbing to $67.40 in early Asian trading. However, concerns over rising U.S. crude stockpiles, which increased by 1.448 million barrels last week per EIA data, and broader economic slowdown fears continue to weigh on sentiment. Market participants remain cautious as they monitor the implications of U.S. trade policies and global demand dynamics.