Dollar Off Highs After Jobless Claims, CPI Data
November 20 2014 - 9:31AM
RTTF2
The U.S. dollar erased its early gains against its major rivals
on Thursday, as jobless claims in the U.S. rose more-than-expected
last week, while consumer price index was flat in October.
The Labor Department report showed that initial jobless claims
came in at 291,000 in the week ended November 15th. This is up from
expectations for 284,000 claims.
A separate report showed that consumer price index was unchanged
in October after inching up by 0.1 percent in September. Economists
had expected consumer prices to edge down by 0.1 percent.
Excluding food and energy prices, the core consumer price index
rose by 0.2 percent in October after ticking up by 0.1 percent in
the previous month. Core prices had been expected to inch up by
another 0.1 percent.
The currency got support in previous deals, as the Federal
Reserve's minutes of October 28-29 policy meeting showed that it
remained on track to lift rates next year, despite concerns about
falling inflation.
The Fed members debated about the pledge of low rates for a
"considerable time" beyond October. But the minutes gave no clues
about whether the language will be scrapped in December.
It also lacked further clarity about when rates could start to
rise in 2015.
Having advanced to more than a 7-year high of 118.97 versus the
yen at 2:10 am ET, the greenback retreated with pair trading at
117.84. The pair ended Wednesday's deals at 117.95. Further
weakness may lead the greenback to a support around the 117.00
zone.
The Japan economy is expected to continue its moderate recovery
trend, the Bank of Japan said in its Monthly Report of Recent
Economic and Financial Developments.
Driven by the recovery in overseas economies, exports are
expected to head for a moderate increase.
The greenback reversed from early 2-day highs of 0.9605 against
the franc and 1.2503 against the euro, easing back to 0.9562 and
1.2561, respectively. The greenback is likely to find support
around 0.95 against the franc and 1.27 against the euro.
The greenback fell to 1.5712 against the pound, off early high
of 1.5631. The next possible support for the greenback lies around
the 1.58 region.
U.K. retail sales grew more than expected in October on strong
recovery in non-food store sales, data from the Office for National
Statistics showed.
Retail sales volume including auto fuel advanced 0.8 percent in
October from September. Economists had forecast sales to recover at
a slower pace of 0.3 percent after falling 0.4 percent in
September
Looking ahead, U.S. leading indicators and existing home sales
for October, as well as Eurozone flash consumer sentiment index for
November are due shortly.
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