Next up US PPI-USD/JPY likely to take centre stage again shortly

Now that the ECB decision is out of the way we will need to wait until the 12.45pm post decision press conference to see if Christine Lagarde might shed any more light on the outcome of this decision. Now ahead of that we get the latest US Producer Price Index (PPI) for the month of August. The markets are expecting producer prices to have cooled last month. The forecast is for a drop to around 1.8% from 2.2% on an annualised basis. However, the core rate of PPI is not forecast to change. That is expected to remain at 2.4%. The USD/JPY could be the most reactive to any surprises, in either direction from this report and hence the focus here. Since edging above 143 earlier this morning, the USD/JPY has been on the drift lower. The dollar has dropped back to a low since that high right now, at 142.30 and it is poised to move rapidly if needs be very shortly, at 12.30pm GMT when this data hits the screens