2019.02.1316:18:00UTC+00U.S. Dollar Shows Modest Move Back To The Upside

Following the pullback seen in the previous session, the value of the U.S. dollar has moved back to the upside on Wednesday.

The U.S. dollar is trading at 111.01 yen compared to the 110.48 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is valued at $1.1266 compared to yesterday's $1.1326.

The rebound by the dollar comes after a report from the Labor Department showed consumer prices were unchanged for the third straight month in January.

The Labor Department said its consumer price index was unchanged in January, matching the revised reading for December. Economists had expected consumer prices to inch up by 0.1 percent.

Excluding food and energy prices, core consumer prices rose by 0.2 percent for the fifth consecutive month. The uptick in core prices matched economist estimates.

The Labor Department said the annual rate of consume price growth slowed to 1.6 percent in January from 1.9 percent in December, showing the slowest rate of growth since June of 2017.

Meanwhile, the report said the annual rate of core consumer price growth was unchanged from the two previous months at 2.2 percent.

"Overall, these data support our baseline view of a well-behaved inflationary environment that provides the Fed room to pause before raising rates again," said Gregory Daco, Chief U.S. Economist at Oxford Economics.

He added, "We look for the Fed to pause throughout the first half of the year to assess the economic landscape before likely raising rates again in Q3."

Traders also continued to express optimism about U.S.-China trade talks and lawmakers managing to avoid another government shutdown.