As the US producer prices growth missed forecasts for July, the EUR/USD currency pair extended gains during Thursday’s session. The Euro appreciated against the US Dollar by 0.06% to 1.2981 to begin a dynamically strong ascending trend. The Labour Department revealed that the US Producer Prices Index dropped 0.1%, compared with a 0.1% increase in June. The PPI marked the strongest fall since August 2016, affected by diminished services costs. Despite the weaker correlation between producer prices and consumer prices, the reported drop could raise concerns over the further deceleration in the inflation growth, which would delay the next interest rate hike. In this regard, the Federal Reserve is more likely to raise rates no sooner than in December.
