The dollar is turning in a mixed performance against its major rivals Wednesday afternoon, but remains little changed overall. The buck has reversed early gains after inflation data met expectations this morning.
Partly reflecting a jump in energy prices, the Labor Department released a report on Wednesday showing consumer prices in the U.S. increased in line with economist estimates in the month of October. The Labor Department said its consumer price index rose by 0.3 percent in October after inching up by 0.1 percent in September. Economists had expected prices to climb by 0.3 percent.
The Italian government also told the European Union Tuesday it would maintain its deficit and economic growth forecasts for 2019 despite calls from the bloc’s authorities to revise its draft budget.
The dollar climbed to a high of $1.1263 against the Euro Wednesday morning, but has since retreated to around $1.1310.
Euro area economic growth halved in the third quarter, latest estimates from the Eurostat confirmed on Wednesday. Gross domestic product grew 0.2 percent from the second quarter, when the economy expanded 0.4 percent.
Germany’s economy contracted at a faster-than-expected pace in the third quarter, marking the first decline since the first three months of 2015 and the worst fall since early 2013, preliminary figures from the Federal Statistical Office showed on Wednesday.
Gross domestic product declined a seasonally and calendar-adjusted 0.2 percent in the three months to September, after expanding 0.5 percent in the second quarter. Economists had forecast a 0.1 percent drop.
The buck rose to a high of $1.2881 against the pound sterling Wednesday morning, but has since eased back to around $1.2975.
UK inflation remained unchanged in October, defying expectations for a modest increase, and allows the Bank of England to focus on the strengthening pay growth that can ultimately lead to an interest rate hike, if the Brexit deal is approved in time.
The consumer price index rose 2.4 percent year-on-year, same as in September, figures from the Office for National Statistics showed on Wednesday. Economists had expected a modest acceleration in the inflation figure to 2.5 percent.
The greenback reached a high of Y114.009 against the Japanese Yen Wednesday, but has since pulled back to around Y113.550.
Japan’s gross domestic product slipped a seasonally adjusted 0.3 percent on quarter in the third quarter of 2018, the Cabinet Office said in Wednesday’s preliminary report. That was in line with expectations following the 0.7 percent gain in the previous three months.
The material has been provided by InstaForex Company – www.instaforex.com