Dollar Lower After Soft U.S. Consumer Inflation Data
12 Dezember 2018 - 10:45AM
RTTF2
The U.S. dollar was lower against its major counterparts in the
European session on Wednesday, as a data showed that nation's
consumer prices came in flat for November, reducing market
expectations for further hikes next year.
Data from the Labor Department showed that U.S. consumer prices
came in flat for November as a sharp pullback in gasoline prices
offset increases in other prices.
The consumer price index was unchanged in November after rising
by 0.3 percent in October. The unchanged reading matched economist
estimates.
Excluding food and energy prices, core consumer prices edged up
by 0.2 percent in November, matching the uptick seen in October as
well as expectations.
Investors await the Fed decision due next week, when it is
widely expected to raise interest rates for the fourth time this
year.
The dollar has been falling over the past few weeks, amid rising
hopes that the Fed is likely to pause its rate-hike cycle next year
as economic growth slows in the U.S.
The currency showed mixed trading against its major counterparts
in the Asian session. While it dropped against the euro and the
pound, it held steady against the franc. Against the yen, it
trended higher.
The greenback dropped to 1.2622 against the pound, after rising
to a 1-1/2-year high of 1.2477 at 2:30 am ET. The greenback is seen
finding support around the 1.28 level.
Following an 8-day high of 113.52 against the yen seen at 2:15
am ET, the greenback pulled back to 113.30 after the data. If the
greenback falls further, 112.00 is possibly seen as its next
support level.
Data from the Bank of Japan showed that Japan producer prices
fell 0.3 percent on month in November.
That missed expectations for a decline of 0.1 percent following
the 0.4 percent increase in October.
The greenback retreated to 0.9937 against the franc, from a
6-day high of 0.9966 set at 7:30 am ET. The greenback is likely to
find support around the 0.98 level.
The greenback fell back to 1.1363 against the euro, after having
climbed to 1.1315 at 2:30 am ET. The greenback is poised to find
support around the 1.15 level.
Figures from Eurostat showed that Eurozone's industrial
production grew in October after a slump in the previous month.
Industrial production rose 0.2 percent from September, when it
declined 0.6 percent, which was revised from 0.3 percent. The
growth was in line with economists' expectations.
The greenback slipped to 1.3341 against the loonie, a 2-day low.
This follows a high of 1.3396 seen at 5:30 pm ET. On the downside,
1.32 is possibly seen as the next support level for the
greenback.
The greenback eased to 0.7224 against the aussie, heading to
pierce a 5-day low of 0.7230 hit at 8:30 pm ET. Next key support
for the greenback is seen around the 0.74 region.
On the flip side, the greenback held steady against the kiwi,
following a 2-week high of 0.6825 it touched at 8:25 am ET. The
next possible resistance for the greenback is seen around the 0.67
level.
The U.S. monthly budget statement for November is scheduled for
release at 2:00 pm ET.
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