Dollar Weakening Ahead Of Inflation Report

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

Alliance News 13 February, 2018 | 7:25PM
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WASHINGTON (Alliance News) - The dollar is down against all of its major rivals Tuesday afternoon. Investors are in a cautious mood ahead of the release of the US consumer price index on Wednesday. The inflation data will help traders to assess the likelihood for a faster pace of rate hike by the Federal Reserve.

The report is forecast to show prices rose at an annual rate of 1.9% in January, down from 2.1% in the previous month.

Other key reports slated for release this week include the retail sales on Wednesday, weekly jobless claims, producer price index, industrial production and housing market index on Thursday, followed by housing starts, import and export prices and consumer sentiment on Friday.

The dollar has dropped to around USD1.2350 against the Euro Tuesday afternoon, from an early high of USD1.2284.

French payroll employment continued to increase in the fourth quarter, data from the statistical office Insee showed Tuesday. Private payroll employment climbed 53,300 or 0.3% from the third quarter. Employment had advanced the same 0.3% or 49,600 in the September quarter.

The buck fell to a low of USD1.3923 against the pound sterling Tuesday, but has since bounced back to around USD1.3875.

UK inflation remained stable in January as downward pressure from auto fuel and food prices was offset by upward effect from recreational and cultural goods. Inflation came in at 3% in January, the same rate as seen in December, the Office for National Statistics reported Tuesday. Inflation was forecast to slow to 2.9%.

British house price inflation accelerated slightly in December, after easing in the previous month, figures from the Office for National Statistics showed Tuesday. The house price index climbed 5.2% year-over-year December, faster than the 5.0% rise in November, which was revised down from a 5.1% increase reported earlier.

The greenback has tumbled to a 5-month low of Y107.725 against the Japanese Yen this afternoon, from an early high of Y108.767.

Producer prices in Japan picked up 0.3% on month in January, the Bank of Japan said on Tuesday. That was in line with expectations and up from the downwardly revised 0.1% gain in December.

Copyright RTT News/dpa-AFX

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