PPI surge fails to lift US dollar as it tumbles

Despite a rise in the Producer Price Index (PPI), the US dollar is falling as worries about inflation fade. The increase in PPI was driven by energy prices, but with oil prices down and gasoline cracks narrowing, October PPI is expected to decline. This trend is likely to continue with the Consumer Price Index (CPI) report. Additionally, geopolitical risks are causing bond yields to retrace, further impacting the US dollar. The pound is currently the strongest currency against the US dollar, reaching its highest level since September 20.