Dollar Up After PPI Release

The Year-over-Year Final Demand figure came in at 6.5%, a half percent increase from the previous figure and above expectations. The Month-over-Month Final Demand figure came in at 1.1% against the expected figure of 0.7%. Initial Jobless Claims for the week ending June 6th were also released and came in at 229k, above economist expectations of 220k. Continuing Claims also came in above expectations at 1795k.

The U.S. and Iran continued to trade blows overnight in the most intense week of combat since the ceasefire was agreed to in April, as President Donald Trump expressed his frustration that the latest round of negotiations had stalled. The U.S. targeted Iranian military sites, including air-defense installations, and Iran responded by targeting American bases in Bahrain, Jordan, and Kuwait, with Jordan intercepting 20 missiles and Kuwait being forced to briefly close its airspace. President Trump asserted that he would continue the strikes if Iran could not agree to an interim peace deal.

EUR

The Euro is down against the Buck this morning after the European Central Bank elected to hike its key interest rate from 2.00% to 2.25% for its first increase in almost three years. While the ECB acknowledged that inflation pressures are growing, they say that they are still well-positioned to navigate any uncertainty caused by the conflict in the Middle East. Traders anticipate that another hike will come as soon as September, but the ECB reiterated that it won’t commit to that at this point.