The US dollar is under some selling pressure, falling around 20 pips since the PPI report.
The data was a touch soft but the headlines highlight disinflationary pressure in the pipeline with the m/m number flat following a 0.4% decline in October. Given the declines in energy prices, December will surely be negative as well.
USD/JPY has fallen to 145.23 from 145.65 before the data:
Treasury yields are lower, led by the front end. US 2s are down 5.5 bps to a session low of 4.67%, all of it since PPI. That's an aggressive move ahead of the FOMC in a few hours but highlights a market that's convinced the Fed will eventually cut rates.
I also wonder if there's some broader yen buying underway here and that's weighing on the dollar.
