The dollar is turning in a mixed performance against its major competitors Tuesday afternoon, but is little changed overall on a weak day on the U.S. data front. Industrial production and homebuilder confidence both logged unexpected declines this morning, but inflation data was in line with expectations.
Consumer prices in the U.S. increased in line with economist estimates in the month of October, according to a report released by the Labor Department on Tuesday. The Labor Department said its consumer price index climbed by 0.2 percent in October after falling by 0.2 percent in September. The modest increase matched economist estimates.
Reflecting steep drops in mining and utilities output, the Federal Reserve released a report on Tuesday showing that U.S. industrial production unexpectedly decreased in the month of October. The report said industrial production dipped by 0.2 percent in October, matching the decrease seen in September. The drop surprised economists, who had expected production to inch up by 0.1 percent.
Homebuilder confidence in the U.S. has unexpectedly deteriorated in the month of November, according to a report released by the National Association of Home Builders on Tuesday. The report said the NAHB/Wells Fargo Housing Market Index fell to 62 in November from an upwardly revised 65 in October.
Economists had expected the index to come in unchanged compared to the 64 originally reported for the previous month.
The dollar has extended its gains against the Euro to a third straight session Tuesday, rising to a 7-month high of $1.0645, from around $1.0830 last week Thursday.
Germany’s economic confidence strengthened more-than-expected in November as investors expect economic conditions to improve in coming six months, results of a closely watched survey showed Tuesday.
The investor sentiment index rose notably to 10.4 in November from 1.9 points in October, the survey carried out by the Mannheim-based Centre for European Economic Research, or ZEW revealed. It was well above the expected score of 6.
The buck dropped to an early low of $1.5238 against the pound sterling Tuesday, but has since bounced back to around $1.5210.
U.K. consumer price inflation remained in the negative territory for the second straight month in October largely due to lower food and energy prices, the Office for National Statistics said Tuesday. Consumer prices decreased 0.1 percent from a year ago, the same rate of decline as seen in September. The fall was in line with economists’ expectations.
Moreover, factory-gate prices decreased for 16 consecutive months signaling weak inflationary pressure in the pipeline. Output prices dropped at a slower pace of 1.3 percent after decreasing 1.8 percent in September. Economists had forecast a 1.4 percent fall.
U.K. house price inflation unexpectedly accelerated for a second straight month in September to reach a six-month high, figures from the Office for National Statistics showed Tuesday. The house price index rose 6.1 percent year-on-year following a 5.5 percent increase in August, revised from 5.2 percent. Economists had expected a 5.4 percent climb.
The greenback rose to over a 1-week high of Y123.173 against the Japanese Yen Tuesday morning, but has since eased back to Y123.350.
The material has been provided by InstaForex Company – www.instaforex.com