The dollar index (DXY00) is up +0.22% today. The dollar index is seeing some technical buying as it extends its two-week rally to post a 3-week high. Bullish factors for the dollar include safe-haven demand amid weakness in stocks and a stronger-than-expected US industrial production report. Bearish factors today include a -4 bp decline in the 10-year T-note yield and today's soft PPI report.
Today's June PPI report was favorable, as both the month-over-month and year-over-year figures were better than expected, suggesting that tariff inflation has not yet hit the producer level. The PPI report sparked some inflation optimism after Tuesday's mixed CPI report.
