Dollar Climbs To Near 3-year High Against Euro After U.S. Inflation Data

Trading 13 fév 2020 Commentaire »

The U.S. dollar spiked up to near a 3-year high against the euro in the European session on Thursday, as the nation's consumer inflation showed a modest increase in January, while a rise in coronavirus cases in China boosted the demand for traditional safe-haven assets.

The U.S. currency touched a 1-1/2-month against the franc and near a 3-year high against the euro following the data.

Data from the Labor Department showed that the consumer price index inched up by 0.1 percent in January after rising by 0.2 percent in December. Economists had expected prices to increase by 0.2 percent.

Core consumer prices, which exclude food and energy prices, rose by 0.2 percent in January after ticking up by 0.1 percent in the previous month. The increase in core prices matched economist estimates.

Separate data showed that first-time claims for U.S. unemployment benefits inched up less than expected in the week ended February 8.

The report said initial jobless claims crept up to 205,000, an increase of 2,000 from the previous week's revised level of 203,000.

Economists had expected jobless claims to rise to 210,000.

Investors await U.S. retail sales data for January due on Friday. Economists expect sales to rise 0.3 percent on month in January, the same rate as in December.

The global risk sentiment faded after a surge in new coronavirus cases in China as officials adopted a new methodology for counting infections.

China announced 15,152 new cases of the flu-like virus on Thursday, bringing the total number to 59,804.

The death toll from the outbreak rose to 1,367 worldwide, according to China's National Health Commission.

The currency turned higher in the Asian session, as a rise in new Chinese coronavirus cases dampened risk sentiment.

The greenback rose to 0.9794 against the franc, its strongest since December 27. At Wednesday's close, the pair was valued at 0.9781. Immediate resistance for the currency is likely seen around the 1.00 level.

The greenback approached 1.0848 against the euro, which was the highest since May 2017. The pair had finished Wednesday's trading at 1.0872. The greenback is likely to face resistance around the 1.05 region, if it gains again.

Final figures from Destatis showed that German consumer price inflation hit a six-month high at the start of the year, driven by a jump in energy prices.

The consumer price index rose 1.7 percent year-on-year following a 1.5 percent increase in December. The flash estimates of all inflation figures for January were confirmed.

But the currency held steady against the yen, after dropping to a 3-day low of 109.62 at 5:00 am ET. The dollar-yen pair was worth 110.09 when it ended deals on Wednesday.

Data from the Bank of Japan showed Japan producer prices rose 0.2 percent on month in January.

That exceeded expectations for a flat reading following the 0.1 percent increase in December.

The greenback, though, dropped to an 8-day low of 1.3046 versus the pound as the latter advanced after the resignation of U.K. finance minister Sajid Javid. The pound-greenback pair had ended yesterday's trading session at 1.2959. The greenback is seen finding support around the 1.32 mark.

Survey data from the Royal Institution of Chartered Surveyors showed that UK housing market activity improved in January with demand, sales and fresh listing all moving into positive territory.

The house price balance rose to +17 percent in January from -2 percent in December. This pick-up was positive price movements in London and the South East.


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Trading 13 fév 2020 Commentaire »

Rishi Sunak Named New UK Chancellor After Sajid Javid Resigns


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U.S. Consumer Prices Tick Up Amid Higher Costs For Food And Shelter

Trading 13 fév 2020 Commentaire »

With higher prices for food and shelter offsetting a steep drop in gasoline prices, the Labor Department released a report on Thursday showing a modest increase in U.S. consumer prices in the month of January.

The Labor Department said its consumer price index inched up by 0.1 percent in January after rising by 0.2 percent in December. Economists had expected prices to increase by 0.2 percent.

The uptick in consumer prices was primarily due to an increase in shelter costs, which climbed by 0.4 percent in January.

Prices for food and for medical care services also rose during the month, more than offsetting a 1.6 percent nosedive in gasoline prices.

Reflecting the pullback in gas prices, which spiked by 3.1 percent in the previous month, energy prices slid by 0.7 percent in January after jumping by 1.6 percent in December.

Core consumer prices, which exclude food and energy prices, rose by 0.2 percent in January after ticking up by 0.1 percent in the previous month. The increase in core prices matched economist estimates.

Along with the higher prices for shelter and medical care, prices for apparel, recreation, education, and airline fares all increased in January.

Compared to the same month a year ago, consumer prices were up by 2.5 percent in January, reflecting the biggest annual increase since October of 2018.

The report said core consumer prices in January were up by 2.3 percent year-over-year, the same rate of growth as reported in the previous 3 months.

"With economic growth slowing, an ongoing lack of corporate pricing power and global deflationary pressures exerting downward force, inflation is poised to remain quiescent in 2020," said a note from economists at Oxford Economics.

They added, "With inflation, as measured by the PCE price index, and growth likely to fall short of the Fed's outlook, we foresee further monetary policy easing with another rate cut likely by midyear."


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U.S. Jobless Claims Inch Up Less Than Expected To 205,000

Trading 13 fév 2020 Commentaire »

First-time claims for U.S. unemployment benefits inched up by less than expected in the week ended February 8th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims crept up to 205,000, an increase of 2,000 from the previous week's revised level of 203,000.

Economists had expected jobless claims to rise to 210,000 from the 202,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average was unchanged from the previous week's revised average at 212,000.

Meanwhile, the report said continuing claims, a reading on the number of people receiving ongoing unemployment assistance fell by 61,000 to 1.698 million in the week ended February 1st.

The four-week moving average of continuing claims also dropped to 1,726,750, a decrease of 17,500 from the previous week's revised average of 1,744,250.

Last Friday, the Labor Department released a separate report showing stronger than expected job growth in the month of January.

The Labor Department said employment jumped by 225,000 jobs in January following a revised increase of 147,000 jobs in December.

Economists had expected employment to rise by 160,000 jobs compared to the addition of 145,000 jobs originally reported for the previous month.

Despite the stronger than expected job growth, the unemployment rate inched up to 3.6 percent in January from 3.5 percent in December. Economists had expected the employment rate to remain unchanged.


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U.S. Consumer Prices Inch Up 0.1% In January

Trading 13 fév 2020 Commentaire »

With higher prices for food and shelter offsetting a steep drop in gasoline prices, the Labor Department released a report on Thursday showing a modest increase in U.S. consumer prices in the month of January.

The Labor Department said its consumer price index inched up by 0.1 percent in January after rising by 0.2 percent in December. Economists had expected prices to increase by 0.2 percent.

Core consumer prices, which exclude food and energy prices, rose by 0.2 percent in January after ticking up by 0.1 percent in the previous month. The increase in core prices matched economist estimates.


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U.S. Weekly Jobless Claims Inch Up To 205,000

Trading 13 fév 2020 Commentaire »

First-time claims for U.S. unemployment benefits inched up by less than expected in the week ended February 8th, according to a report released by the Labor Department on Thursday.

The report said initial jobless claims crept up to 205,000, an increase of 2,000 from the previous week's revised level of 203,000.

Economists had expected jobless claims to rise to 210,000 from the 202,000 originally reported for the previous week.

The Labor Department said the less volatile four-week moving average was unchanged from the previous week's revised average at 212,000.


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Dollar Mixed After U.S. CPI

Trading 13 fév 2020 Commentaire »

After the release of U.S. CPI for January and weekly jobless claims for the week ended February 8 at 8:30 am ET Thursday, the greenback traded mixed against its major rivals. While the greenback ticked up against the franc and the yen, it changed little against the euro and the pound.

The greenback was trading at 1.0860 against the euro, 109.75 against the yen, 0.9791 against the franc and 1.3031 against the pound around 8:32 am ET.


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*U.S. Consumer Prices Inch Up 0.1% In January, Core Prices Rise 0.2%

Trading 13 fév 2020 Commentaire »

U.S. Consumer Prices Inch Up 0.1% In January, Core Prices Rise 0.2%


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*U.S. Initial Jobless Claims Inch Up To 205,000 In Week Ended 2/8

Trading 13 fév 2020 Commentaire »

U.S. Initial Jobless Claims Inch Up To 205,000 In Week Ended 2/8


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Dollar Mixed Ahead Of U.S. CPI

Trading 13 fév 2020 Commentaire »

At 8:30 am ET Thursday, the U.S. CPI for January and weekly jobless claims for the week ended February 8 are due. Ahead of these data, the greenback traded mixed against its major rivals. While the greenback fell against the pound, it held steady against the rest of major counterparts.

The greenback was worth 1.0862 against the euro, 109.73 against the yen, 0.9789 against the franc and 1.3034 against the pound as of 8:25 am ET.


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