PPI Reminds Fed, GBP Vol Highest since Sep

If last Friday's message from non-farm payrolls was a reminder of a recovering and healthy US jobs market, today's producer prices index report is a reminder that not only deflation has crept into suppliers' pipelines but, that the Fed's description of lower energy prices having “transitory” effects will remain in next week's FOMC statement as oil prices drop back 20% from their post-FOMC meeting peak and are now a mere 10 cents above the last FOMC meeting on January 28. Meanwhile, here is what sterling has done.

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