Dollar Climbing Ahead Of Data Deluge

WASHINGTON (Alliance News) - The dollar is gaining ground against all of its major rivals ...

Alliance News 13 September, 2017 | 7:08PM
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WASHINGTON (Alliance News) - The dollar is gaining ground against all of its major rivals Wednesday afternoon. Investors appear hopeful ahead of a White House dinner meeting between President Trump, Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi.

The dinner meeting is expected to include discussions on protections for undocumented immigrants brought to the US as children and stabilizing the Obamacare health insurance markets. Schumer, Pelosi, and Trump are also planning to discuss the new deadlines established by the fiscal package approved last week that included a three-month increase in the debt limit.

It was a light day on the US economic front, but things are due to pick up notably in the next two days.

The consumer price index and weekly jobless claims are due to be released Thursday morning. Retail sales, industrial production, consumer sentiment, business inventories and the empire state manufacturing survey are also slated for Friday morning.

Producer prices in the US rose by slightly less than expected in the month of August, according to a report released by the Labor Department on Wednesday. The Labor Department said its producer price index for final demand edged up by 0.2% in August after slipping by 0.1% in July. Economists had expected the index to climb by 0.3%.

The dollar has climbed to over a 1-week high of USD1.1885 against the Euro Wednesday afternoon, from an early low of USD1.1994.

Eurozone industrial production increased slightly in July after declining in June, Eurostat reported Wednesday. Industrial production grew 0.1% month-on-month in July, in contrast to a 0.6% fall in June. Monthly growth matched economists' expectations.

Eurozone employment grew at a slightly slower pace in the second quarter, Eurostat reported Wednesday. Employment increased 0.4% sequentially in the second quarter, following a 0.5% rise in the first quarter.

Germany's inflation accelerated to a four-month high in August on energy prices, final data from Destatis showed Wednesday.

Consumer price inflation rose to 1.8% in August from 1.7% in July. The rate came in line with the preliminary estimate released on August 30. This was the highest since April, when the rate was 2%.

Germany's wholesale prices increased at the sharpest pace in four months in August, figures from Destatis showed Wednesday. Wholesale prices grew 3.2% year-over-year in August, faster than the 2.2% climb in July.

The buck has risen to around USD1.32 against the pound sterling Wednesday afternoon, after slipping to a low of USD1.3328 this morning.

The UK jobless rate dropped unexpectedly in three months to July, data from the Office for National Statistics showed Wednesday. The jobless rate fell to 4.3%, the lowest since 1975, the ONS said. Economists had forecast the rate to remain unchanged at 4.4%, as seen in three months to June.

The greenback dipped to a low of Y109.904 against the Japanese Yen this morning, but has since rebounded to around Y110.525.

Producer prices in Japan were flat on month in August, the Bank of Japan said on Wednesday. That was shy of expectations for an increase of 0.1% following the 0.3% gain in July.

Japan's business survey index of large manufacturers improved notably in the three months ended September, the quarterly survey by the Ministry of Finance and the Cabinet Office showed Wednesday. The Business Survey Index, or BSI, rose to 5.1 in the three-month period to September from -2.0 in the previous three months.

Copyright RTT News/dpa-AFX

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