Dollar Climbs As U.S. Consumer Inflation Picks Up
The U.S. dollar strengthened against its major counterparts in
the European session on Friday, as the nation's consumer inflation
improved more than forecast in August due to the resumption of
activity after COVID-led shutdown.
Data from the Labor Department showed that the consumer price
index climbed by 0.4 percent in August after advancing by 0.6
percent for two straight months. Economists had expected consumer
prices to rise by 0.3 percent.
Excluding food and energy prices, core consumer prices still
rose by 0.4 percent in August following a 0.6 percent increase in
July. Core consumer prices were expected to edge up by 0.2
The greenback showed mixed trading in the Asian session, by
falling against the euro and the pound but holding steady against
the franc. Versus the yen, it advanced.
The greenback bounced off to 0.9103 against the franc, from a
low of 0.9080 set at 5:45 am ET. The greenback is seen finding
resistance around the 0.95 mark.
The greenback staged a modest recovery against the euro, with
the pair trading at 1.1835. This followed a low of 1.1874 logged at
5:50 am ET. The pair closed deals at 1.1815 on Thursday. The next
possible resistance for the greenback is seen around the 1.16
Data from Destatis showed that German consumer prices were
unchanged in August after a modest decline in July.
The consumer price index was unchanged on a year-on-year basis,
after a 0.1 percent fall in July. Compared to the previous month,
the index decreased 0.1 percent.
The greenback rose back to 1.2786 against the pound, heading
towards nearly a 2-month peak of 1.2762 hit at 5:00 am ET. Should
the greenback rises further, it may find resistance around the 1.25
Data from Office for National Statistics showed that the UK
economy expanded for the third straight month in July as lockdown
measures continued to ease.
Gross domestic product expanded 6.6 percent in July from June,
when it gained 8.7 percent. GDP was forecast to climb 6.7
The greenback rebounded to 1.3194 against the loonie, 0.6666
against the kiwi and 0.7284 against the aussie, from its prior lows
of 1.3151, 0.6695 and 0.7306, respectively. The greenback may find
resistance around 1.33 against the loonie, 0.64 against the kiwi
and 0.70 against the aussie.
In contrast, the greenback was trading at 106.15 against the
yen, slightly down from a high of 106.27 recorded at 3:20 am ET. On
the downside, 104.00 is possibly seen as its next support
Data from the Bank of Japan showed that Japan producer prices
rose 0.2 percent on month in August - in line with forecasts and
down from 0.8 percent in July.
On a yearly basis, producer prices fell 0.5 percent - again
matching expectations following the 0.9 percent decline in the
The U.S. monthly budget statement for August is set for release
in the New York session.
US Dollar vs CAD (FX:USDCAD)
From Dec 2020 to Jan 2021
US Dollar vs CAD (FX:USDCAD)
From Jan 2020 to Jan 2021