Dollar Mixed Ahead Of Inflation Data

WASHINGTON (Alliance News) - The dollar is turning in a mixed performance against its major ...

Alliance News 12 October, 2017 | 8:02PM
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WASHINGTON (Alliance News) - The dollar is turning in a mixed performance against its major rivals Thursday afternoon, but is little changed overall. Weekly jobless claims came in better than expected this morning, while producer prices were in line with expectations. Traders are looking forward to the release of the consumer price index tomorrow morning, as well as retail sales and consumer sentiment.

First-time claims for US unemployment benefits fell by more than anticipated in the week ended October 7th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims dropped to 243,000, a decrease of 15,000 from the previous week's revised level of 258,000.

Economists had expected jobless claims to dip to 251,000 from the 260,000 originally reported for the previous week.

Partly reflecting another jump in energy prices, the Labor Department released a report on Thursday showing that US producer prices increased in line with economist estimates in the month of September. The Labor Department said its producer price index for final demand climbed by 0.4% in September after edging up by 0.2% in August.

The dollar has climbed to around USD1.1840 against the Euro Thursday afternoon, from an early low of USD1.1879.

Eurozone industrial output expanded at the fastest pace in nine months in August, largely driven by production of capital goods. Industrial production grew by a more-than-expected 1.4% month-on-month in August, faster than the 0.3% rise seen in July, data from Eurostat showed Thursday.

This was the biggest increase since November 2016, when output grew 1.6%. Economists had forecast a monthly 0.6% increase.

France's consumer price inflation rose to a five-month high in September, final data from the statistical office Insee showed Thursday. Inflation rose to 1% in September, as estimated, from 0.9% in August. This was the fastest rate since April, when inflation was 1.2%.

The buck has dropped to a 1-week low of USD1.3275 against the pound sterling Thursday afternoon, from an early high of USD1.3120.

House prices in the UK moved higher again in September, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday with a house price balance of 6.0%. That was unchanged from the August reading, and it beat expectations for a gain of 4.0%.

The greenback rose to a high of Y112.462 against the Japanese Yen Thursday morning, but has since eased back to around Y112.175.

Producer prices in Japan were up 0.2% on month in September, the Bank of Japan said on Thursday. That was in line with expectations following the flat reading in August.

Overall bank lending in Japan was up 3.0% on year in September, the Bank of Japan said on Thursday, coming in at 516.810 trillion yen. That was shy of expectations for an increase of 3.2%, which would have been unchanged from the August reading.

Japan's tertiary activity contracted unexpectedly in August, data from the Ministry of Economy, Trade and Industry revealed Thursday. The tertiary industry activity dropped 0.2% month-on-month in August, reversing a 0.1% rise in July. Economists had forecast an increase of 0.1%.

Copyright RTT News/dpa-AFX

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