Whether inflation begins to trend higher will be a key issue for traders this year, so any data that helps to build the picture of how inflation is moving will be pounced upon by traders. Last week’s average hourly earnings showed limited upside pressure and did little for the dollar, however yesterday’s US factory gate inflation (the PPI) was weaker than expected on both core and headline basis. This dragged longer dated Treasury yields lower and hit the dollar into the afternoon. It also ramps up the pressure on today’s consumer inflation data, the US CPI. Putting further pressure on the dollar was the revelation ... (full story)