PPI Data DISAPPOINTS US DOLLER MAY GO ABOVE 79 N THEN 80-81 Levls.. SO GO SHORT ON HIGHS>.

Core Producer Prices of US Fall, Disinflation Fears have arrived Now DOLLER MAY CROSS 79-82..

Doller is Sustaining near 78.8 NOW...and CAN GO BEYOND 79-80 LEVELS in COMMING TIME or SESSION

AS NSE LOST 6% n Shanghai LOST 10% From highs.. Clearly indicating that Doller Will MOVE UP..

SOOn..

U.S. core producer prices unexpectedly fell in October to post their largest decline in more than four years, according to a government report on Tuesday that underscored the Federal Reserve's concerns about the low inflation environment.

The Labor Department said the core producer price index, which excludes food and energy costs, fell 0.6 percent—the biggest drop since July 2006—after edging up 0.1 percent in September. Economists polled by Reuters had expected core PPI to gain 0.1 percent in October.

The headline PPI index rose 0.4 percent last month, well below economists' expectations for a 0.8 percent increase, after gaining 0.4 percent in September.

"It's a dollar negative—It's certainly undercutting all the arguments that inflation is ready to break out here," said Brian Dolan, chief currency strategist at Forex.com. "We've had a backup in Treasury yields, and I expect them to come off even further. It'll also keep a lid on dollar/yen and put a floor under the euro, as would a resolution of Ireland's issues."

"The euro fell to an area of pretty significant support in the $1.3550-60 range and I think we could see it stabilize," Dolan continued. "Commodity prices have come up, but this data shows producers can't pass it along. So inflation is probably not going to show up in the CPI data either."