The dollar rose further this afternoon after US data showed stronger-than-expected producer prices and a better-than-expected trade deficit. Official figures showed US PPI rose by 0.6 pct in July, sharply higher than the 0.1 pct expected, suggesting that the Federal Reserve will be in no position to relax its concern about rising inflationary pressures in the economy. Core prices, however, were up just 0.1 pct, below the 0.2 pct expected. Meanwhile, trade figures also beat forecasts. The US trade deficit dropped to a four-month low in June of 58.1 bln usd as record exports of farm goods and autos offset a jump in crude oil prices. Economists were looking for a 60.0 bln usd June deficit, not expecting exports to surpass the rising import bill. Тhe euro was trading at 1.3572 usd, down from 1.3586 just before the data were released, while the pound fell to 1.9990 usd from 2.0010. CIBC analyst Audrey Childe-Freeman said the improving trade position bodes well for second quarter US GDP, though the market impact will be limited as the strong headline PPI inflation is partly offset by the "more benign" core PPI. Tomorrow's key CPI data is likely to be more of a market mover, she said.