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A model from AlixPartners shows what items like sweaters and shoes imported from Vietnam could cost under President Donald Trump’s tariff plans.

• Prior was $-0.51 billion (revised to $-2.26 billion)
• Exports $60.44 billion vs $69.90 billion prior (revised to $67.76 billion)
• Imports $67.58 billion vs $70.40 billion prior (revised to $70.01 billion)

This article was written by Giuseppe Dellamotta at www.forexlive.com.

• Prior was 240K
• Continuing claims 1904K vs 1910K expected
• Prior 1919K

The market has been waiting for a climb in initial jobless claims. This reading is the highest since October, so it’s certainly creeping up and the US dollar has dipped on the data.

This article was written by Adam Button at www.forexlive.com.

Eurozone PPI dropped sharply by -2.2% mom in April, steeper than the expected -1.8% mom. decline. Annual PPI rose just 0.7% yoy, below forecasts of 1.2% yoy. PPI ex-energy was up 0.1% mom, 1.1% yoy The drag on Eurozone PPI was driven primarily by a -7.7% mom fall in energy prices. Prices for intermediate goods […]

The post Eurozone PPI slumps -2.2% mom on energy prices appeared first on Action Forex.

Shift4 founder Jared Isaacman, who had been President Trump’s pick to run NASA, told investors in a letter on Wednesday that he’s giving up his CEO role.

Developers including Amazon and Spotify have been able to update their apps to avoid Apple’s 15% to 30% commission.

The Fed has indicated that interest rates aren’t coming down just yet. Here’s how to make the most of where we stand.

The New York Fed conducted a survey on tariffs passthrough. They found that “most businesses passed on at least some of the higher
tariffs to their customers, with nearly a third of manufacturers and
about 45 percent of service firms fully passing along all tariff-induced
cost increases by raising their prices.”

One caveat is that the survey was conducted between May 2 and May 9 before tariff hikes on goods from China were reduced from 145 percent to 30 percent.

They also found that “price increases happened rapidly: over half of both manufacturers and
service firms said they raised prices within a month of experiencing
tariff-related cost increases—many within a day or week.”

The most concerning finding was that “a significant share of businesses also reported raising
the selling prices of their goods and services unaffected by tariffs.
Many businesses indicated they increased prices to cover other rising
costs such as wages and insurance, though it is possible that in some
cases, businesses were taking advantage of an escalating pricing
environment to increase prices.”

The recent US PMIs showed inflationary pressures increasing which could result in higher CPI readings in the next months.

For the Fed it’s a tricky situation because it might be true that tariffs are a one-off price increase and they are focused on the trend instead. But if they start to ease with the tax cuts and deregulation ahead, the price increase could become embedded and the return to the 2% target could become even more difficult (especially considering that we’ve been above target for 5 years).

Here you can find the NY Fed survey

This article was written by Giuseppe Dellamotta at www.forexlive.com.