Dollar Rising Ahead Of Data Deluge
November 20 2018 - 9:49AM
RTTF2
The dollar is gaining ground against its major rivals Tuesday
afternoon. Traders are looking forward to the release of a large
number of U.S. economic reports tomorrow morning, ahead of
Thursday's Thanksgiving Day holiday.
Durable goods orders, weekly jobless claims, consumer sentiment,
existing home sales and the leading economic index are all slated
to be released Wednesday morning.
Housing starts in the U.S. rebounded in the month of October,
according to a report released by the Commerce Department on
Tuesday, although the report also showed a decrease in building
permits. The Commerce Department said housing starts jumped by 1.5
percent to an annual rate of 1.228 million in October after
plunging by 5.5 percent to a revised rate of 1.210 million in
September.
Economists had expected housing starts to climb to a rate of
1.225 million from the 1.201 million originally reported for the
previous month.
Meanwhile, the report said building permits fell by 0.6 percent
to an annual rate of 1.263 million in October after surging up by
1.7 percent to an upwardly revised 1.270 million in September.
Building permits, an indicator of future housing demand, had been
expected to increase to 1.267 million from the 1.241 million
originally reported for the previous month.
The dollar slid to an early low of $1.1472 against the Euro
Tuesday, but has since climbed to around $1.1365.
Germany's industrial producer prices rose at the fastest pace in
18 months during October, figures from the Federal Statistical
Office showed on Tuesday. Producer prices rose 3.3 percent
year-on-year following a 3.2 percent increase in September. The
increase matched economists' expectations.
France's jobless rate was unchanged in the third quarter from
the previous three months, preliminary data from INSEE showed on
Tuesday.
The ILO unemployment rate for the metropolitan France was 8.8
percent, unchanged from the second quarter, but was 0.5 points
lower than a year ago. The number of unemployed rose by 22,000
sequentially to 2.6 million persons.
Bank of England Governor Mark Carney welcomed the draft Brexit
deal and the transition arrangement that the British Prime Minister
Theresa May struck with the European Union last week, but warned
that the risks of a "no-deal, no-transition" scenario remained very
high.
Speaking at a Treasury Select Committee hearing on Tuesday,
Carney said, "We welcome the transition arrangements in the
withdrawal agreement."
"We also take note of the possibility of extending that
transition period," he added.
The draft Brexit withdrawal deal sees the UK leaving the
European Union on March 29, 2019 and the transition period will
begin from that day to last until December 31, 2020.
The deal allows for extension of transition beyond 2020 which,
according to Carney, was essential as trade deals take an average
four years to negotiate.
The buck dipped to a low of $1.2883 against the pound sterling
Tuesday morning, but has since risen to around $1.2785.
The greenback fell to a low of Y112.304 against the Japanese Yen
Tuesday, but has since rebounded to around Y112.785.
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