The dollar got off to a weak start against its major rivals Wednesday, but has since pared its early losses. The buck is now little changed against its major European rivals, but remains weaker against the Japanese Yen. U.S. economic data proved a mixed bag this morning.
With an increase in shelter costs offsetting a pullback in energy prices, the Labor Department released a report on Wednesday showing an uptick in U.S. consumer prices in the month of October. The Labor Department said its consumer price index inched up by 0.1 percent in October after climbing by 0.5 percent in September. The modest increase in consumer prices matched economist estimates.
Retail sales in the U.S. unexpectedly increased in the month of October, according to a report released by the Commerce Department on Wednesday. The Commerce Department said retail sales rose by 0.2 percent in October after spiking by an upwardly revised 1.9 percent in September.
Economists had expected retail sales to come in unchanged compared to the 1.6 percent jump originally reported the previous month.
Growth in New York manufacturing activity slowed by more than anticipated in the month of November, according to a report released by the Federal Reserve Bank of New York on Wednesday.
The New York Fed said its general business conditions index dropped to 19.4 in November from 30.2 in October, although a positive reading still indicates growth. Economists had expected the index to fall to 26.0.
With a drop in retail inventories offsetting increases in manufacturing and wholesale inventories, the Commerce Department released a report on Wednesday showing U.S. business inventories were unchanged in the month of September.
The Commerce Department said business inventories were flat in September after climbing by a revised 0.6 percent in August. Economists had expected business inventories to come in unchanged compared to the 0.7 percent increase originally reported for the previous month.
The dollar dropped to an early low of $1.1859 against the Euro Wednesday morning, but has since bounced back to around $1.18.
The euro area trade surplus increased in September from August as exports increased amid a fall in imports, Eurostat reported Wednesday. Exports grew 1.1 percent month-on-month in September, while imports decreased 1.2 percent.
As a result, the trade surplus rose to a seasonally adjusted EUR 25 billion from EUR 21 billion in August.
France's inflation increased as initially estimated in October, final data from the statistical office Insee showed Wednesday. Inflation rose to 1.1 percent in October from 1 percent in September. The was in line with the flash estimate published on October 31.
The buck slipped to an early low of $1.3211 against the pound sterling Wednesday, but has since rebounded to around $1.3175.
The UK unemployment rate held steady at the lowest since 1975 but employment decreased in the third quarter. The ILO jobless rate came in at 4.3 percent in the third quarter, the same as in three months to August, the Office for National Statistics said Wednesday.
This was the lowest since March to May 1975. But the rate dropped from 4.4 percent in the second quarter and 4.8 percent a year earlier.
The greenback dropped to 3-week low of Y112.472 against the Japanese Yen Wednesday, but has since climbed back to around Y112.920.
Japan's gross domestic product advanced a seasonally adjusted 0.3 percent on quarter in the third quarter of 2017, the Cabinet Office said in Wednesday's preliminary reading. That was shy of expectations for a gain of 0.4 percent and down from 0.6 percent in the second quarter.
Japan's industrial production declined less than initially estimated in September, latest figures from the Ministry of Economy, Trade and Industry said on Wednesday. Industrial production dropped a seasonally adjusted 1.0 percent monthly in September instead of a 1.1 percent decrease reported earlier. This was followed by a 2.0 percent rise in August.
