Chinese Vice Premier Liu he set off for trade talks in the US yesterday as global stock markets fell as the panic VIX hit a 20 per cent high this year and the yen rose again on the back of risk aversion. The highest rose to 109.46. While President Donald Trump said yesterday that there was still hope to save the dollar from the downturn, it could not resist the tension that prevailed in the market. U.S. PPI data were released yesterday, with U.S. PPI recorded 2.2 percent year-on-year in April from a year earlier, lower than expected 2.3 percent, and April PPI recorded 0.2 percent month-on-month, down from 0.6 percent and 0.3 percent. The indicator serves as an important guide to observing inflation levels, with weak data showing rising inflationary pressures, but also looking at today`s April CPI data from the 12:30GMT, which is expected to give further guidance on inflation levels. The U.S. CPI is expected to rise to 2.1 percent from 1.9 percent in April compared with a year earlier, and the month-on-month ratio of 0.4 percent to 0.4 percent in April was the same as the previous value. The U.S. core CPI is expected to rise to 2.1 percent year-on-year from 2.0 percent in April and 0.2 percent to 0.2 percent in April from 0.1 percent. If the data is in line with expectations, Federal Reserve Chairman Powell`s comments at last week`s interest-rate meeting that the inflation downturn was temporary earlier this year added confidence to the United States` economic. On a technical level, the currency fell below the 110.00 integer threshold yesterday, falling for five consecutive days, and the currency is expected to have more room for downside. The upper resistance level is 110.70, and the lower support level is 108.50.
