U.S. Dollar Higher After Inflation Data
November 30 2023 - 6:35AM
RTTF2
The U.S. dollar appreciated against its most major counterparts
in the European session on Thursday, as the Federal Reserve's
preferred measure of inflation rose in line with expectations in
October, supporting expectations that the Federal Reserve will
leave rates unchanged for some time.
Data from the Commerce Department showed that the annual rate of
consumer price growth decelerated to 3.0 percent in October from
3.4 percent in September. The slowdown matched expectations.
Core consumer price growth also slowed in line with estimates,
slipping to 3.5 percent in October from 3.7 percent in September.
Core consumer prices exclude food and energy prices.
On a monthly basis, consumer prices were unchanged in October
after climbing by 0.4 percent in September, while core consumer
prices crept up by 0.2 percent after rising by 0.3 percent in the
previous month.
The inflation readings, which are said to be preferred by the
Federal Reserve, were included in the Commerce Department's report
on personal income and spending during the month.
The report said personal income edged up by 0.2 percent in
October after climbing by 0.4 percent in September. The uptick came
in line with economist estimates.
Personal spending also increased in line with estimates, rising
by 0.2 percent in October following a 0.7 percent advance in
September.
A separate report released by the Labor Department showed a
modest increase in first-time claims for U.S. unemployment benefits
in the week ended November 25th.
The Labor Department said initial jobless claims inched up to
218,000, an increase of 7,000 from the previous week's revised
level of 211,000.
Economists had expected jobless claims to rise to 220,000 from
the 209,000 originally reported for the previous week.
The greenback advanced to a 1-week high of 1.0892 against the
euro, 2-day high of 148.50 against the yen and a 3-day high of
1.2603 against the pound, from yesterday's close of 1.0969, 147.23
and 1.2694, respectively. The currency is poised to find resistance
around 1.04 against the euro, 153.00 against the yen and 1.23
against the pound.
The greenback climbed to a 3-day high of 0.6570 against the
aussie and a 2-day high of 0.6120 against the kiwi, from
Wednesday's close of 0.6616 and 0.6155, respectively. The next
possible resistance for the currency is seen around 0.63 against
the aussie and 0.59 against the kiwi.
In contrast, the greenback weakened to a 3-1/2-month low of
0.8711 against the franc. The greenback is seen finding support
around the 0.85 level.
The greenback fell to 1.3552 against the loonie, from an early
3-day high of 1.3626. Next immediate support for the greenback is
seen around the 1.32 level.
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