US producer prices drop
The US producer price index fell in July by 0.9%, declining at an annual pace of -6.8% as food and energy prices plummeted. Excluding food and energy, producer prices fell -0.1% on the month and are set to rise 2.6% on the year, suggesting that inflation still remains beyond steady and stable.
Also released in the US today are housing statistics which show US building starts rose in July for the fifth consecutive month, while housing permits fell 1.8%. The data led to choppy trading and declines for the USD, as investors remain uncertain over what this means for economic recovery.
Exchange rates for the US dollar have declined over 1% against the pound to 0.6041 and are currently trading at 0.7077 against the euro.
The rates quoted above are interbank rates. Client rates may vary according to the volume and timing of the trade.