The dollar is nearly unchanged against both the Euro and the Japanese Yen Tuesday afternoon. Another session devoid of U.S. economic data is largely responsible for the lackluster trading action. However, the buck is up against the British pound after the unexpected drop in U.K. industrial production.
Things will begin to pick up on the data front Wednesday afternoon, when the Beige Book will be released. Investors can look forward to weekly jobless claims, along with import and export prices on Thursday. A high volume of reports are slated for Friday, including retail sales, producer prices, industrial production and consumer sentiment, among others.
The dollar climbed to over a 5-year high of $1.4350 against the pound sterling Tuesday, but has since eased back to around $1.4435.
U.K. industrial production declined at the fastest pace in almost three years in November as warm weather reduced energy demand. Industrial output slid unexpectedly by 0.7 percent month-on-month after staying flat in October, figures from the Office for National Statistics showed Tuesday. Production was forecast to grow 0.1 percent in November.
Like-for-like sales in the United Kingdom were up just 0.1 percent on year in December, the British Retail Consortium said on Tuesday. That was well shy of forecasts for an increase of 0.5 percent following the 0.4 percent contraction in November.
Euro area economic recovery is set to continue at a moderate pace, led by private consumption, three leading institutes said in a joint report on Tuesday.
Gross domestic product is expected to grow 0.4 percent each sequentially in the first and second quarters of this year, the German Ifo, the French Insee and the Italian Istat institutes said. For the fourth quarter of 2015, growth was estimated at 0.4 percent.
The buck rose to a high of $1.0819 against the Euro Tuesday, but has since retreated to around $1.0875.
The greenback reached a high of Y118.065 against the Japanese Yen Tuesday, but has since slipped back to around Y117.410.
Japan posted a current account surplus of 1,143.5 billion yen in November, the Ministry of Finance said on Tuesday, up 159.8 percent on year. The headline figure exceeded expectations for a surplus of 895.0 billion following the 1,458.4 billion yen surplus in October.
Japan’s consumer confidence improved unexpectedly in December, though slightly, survey data from the Cabinet Office showed Tuesday. The seasonally adjusted consumer confidence index rose to 42.7 in December from 42.6 in the previous month. Economists had forecast the index to drop to 42.4.
A measure of peoples’ assessment of the Japanese economy increased more-than-expected in December to the highest level in four months, survey figures from the Cabinet Office showed Tuesday. The current index of Economy Watchers’ survey climbed to 48.7 in December from 46.1 in November. Economists had forecast the index to rise to 46.6.
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