Dollar Mixed After U.S. Consumer Inflation, Retail Sales
1/12/2018 9:29 AM
The U.S. dollar came in mixed against its key counterparts in the European session on Friday, after a data showed that U.S. consumer prices rose less than expected in December, while retail sales growth matched economists' estimates.
Data from the Labor Department showed that U.S. consumer prices rose less than expected in December reflecting a sharp pullback in energy prices.
The Labor Department said its consumer price index inched up by 0.1 percent in December after climbing by 0.4 in November. Economists had expected prices to rise by 0.2 percent.
Meanwhile, the report said core consumer prices, which exclude food and energy prices, increased by 0.3 percent in December after ticking up by 0.1 percent in November. Core prices had been expected to rise by 0.2 percent.
Data from the Commerce Department showed that U.S. retail sales rose in line with economist estimates in the month of December.
The Commerce Department said retail sales increased by 0.4 percent in December after climbing by an upwardly revised 0.9 percent in November.
Economists had expected retail sales to rise by 0.4 percent compared to the 0.8 percent increase originally reported for the previous month.
The greenback declined during the European session on the back of tepid producer price data as well as a slowdown in Chinese exports and imports growth in December.
In the Asian session, the currency exhibited mixed performance against its major rivals. While it fell against the euro and the pound, it held steady against the franc and the yen.
Having fallen to a 1-1/2-month low of 110.97 against the yen at 6:15 am ET, the greenback reversed direction and rose to 111.68. The next possible resistance for the greenback-yen pair is seen around the 113.00 zone.
Survey figures from the Cabinet Office showed that a measure of peoples' assessment of the Japanese economy decreased unexpectedly in December, though marginally.
The current index of Economy Watchers' survey dropped to 53.9 in December from 54.1 in November.
The greenback reclaimed some of its lost ground against the Swiss franc with the pair trading at 0.9728. This may be compared to a 10-day low of 0.9701 hit at 5:30 am ET. On the upside, 0.98 is likely seen as the next resistance for the greenback.
The greenback extended its early losses against the euro, touching more than a 3-year low of 1.2148. The greenback is seen finding support around the 1.23 region.
Data from German economy ministry showed that the country's strong economic momentum is likely to have eased somewhat by the end of 2017 but the economy will be robust in 2018.
Large order intake and the positive business expectations signal that the economic trend will continue to be robust in the current year.
The greenback lost ground against the pound, hitting a 1-1/2-year low of 1.3689. Continuation of the greenback's downtrend may see it challenging support around the 1.38 area.
The U.S. business inventories for November are set for release at 10:00 am ET.
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