How does the Producer Price Index affect the Forex Market? -

Although it seems there is a relationship between Producer Price Index (PPI) and Foreign Exchange Market, I don t know how exactly announcing PPI changes the market. Any suggestion? PPI, CPI, NFP all impact the Forex market based on whether or not the monthly results are in line with expectations. If the PPI is unexpectedly high that would have a negative impact on the USD. If PPI comes in well under the expectations than this would bode well for the USD and you would see currency pairs like the USD/CHF and USD/JPY appreciate in price. All you need to do is have someone on the inside leak to you what the results will be before they are released and you will be rich. Otherwise you just have to guess like everyone else. Paul