Dollar Mixed After U.S. Consumer Inflation Data; Fed Decision Eyed
December 11 2019 - 04:20AM
RTTF2
The U.S. dollar showed mixed trading against its major opponents
in the European session on Wednesday, after the release of nation's
consumer inflation data that improved more than forecast in
November. Investors awaited the outcome of the two-day Federal
Reserve monetary policy meeting due later in the day.
Data from the Labor Department showed that the consumer price
index rose by 0.3 percent in November after climbing by 0.4 percent
in October. Economists had expected prices to edge up by 0.2
percent.
Excluding food and energy prices, core consumer prices crept up
by 0.2 percent in November, matching the uptick seen in the
previous month as well as economist estimates.
The Fed will conclude its December meeting at 2:00 pm ET. The
central bank is widely expected to leave interest rates unchanged,
but investors will pay close attention to the accompanying
statement for clues about the outlook for rates.
Market participants focused on developments in U.S.-China trade
talks ahead of the December 15 deadline.
The Wall Street Journal reported that Washington is laying the
groundwork for a delay in the latest tariffs on China, due to take
effect on Sunday.
However, White House economic adviser Larry Kudlow said the
"tariffs are still on the table".
The currency climbed against its most major counterparts in the
Asian session on Wednesday, following reports that Washington is
laying the groundwork for a delay in the latest tariffs on China,
due to take effect on Sunday.
The greenback eased off to 0.9848 against the franc, from a high
of 0.9861 hit at 7:45 am ET. The greenback may challenge support
around the 0.96 mark.
The greenback fell to 1.3174 against the pound, from a 5-day
high of 1.3107 seen at 5:15 pm ET. The greenback is seen facing
support around the 1.34 mark.
The greenback held steady against the yen, after having pulled
back from a 5-day high of 108.86 set at 6:15 pm ET. The pair had
ended Tuesday's deals at 108.72.
Data from the Bank of Japan showed that Japan producer prices
rose 0.2 percent on month in November.
That beat expectations for an increase of 0.1 percent following
the 1.1 percent drop in October.
The greenback reached as high as 1.1070 against the euro,
compared to Tuesday's closing value of 1.1092. If the greenback
extends its rally, 1.09 is likely seen as its next resistance
level.
Looking ahead, at 2:00 pm ET, the Federal Reserve's interest
rate decision is slated for release. Economists widely expect the
central bank to retain the benchmark rate at 1.50 percent - 1.75
percent.
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