The dollar is losing ground against all of its major rivals Friday afternoon, following the release of several weaker than expected economic reports. Retail sales, consumer sentiment and business inventories all came in weaker than expected this morning.
Partly reflecting a continued decrease in auto sales, the Commerce Department released a report on Friday showing that U.S. retail sales increased by slightly less than expected in the month of November. The report said retail sales rose by 0.2 percent in November after inching up by 0.1 percent in October. Economists had expected sales to increase by about 0.3 percent.
Producer prices in the U.S. expectedly rebounded in the month of November, according to a report released by the Labor Department on Friday. The Labor Department said its producer price index for final demand climbed by 0.3 percent in November following a 0.4 percent drop in October. Economists had expected the index to come in unchanged.
Consumer sentiment in the U.S. has seen a slight improvement in the month of December, the University of Michigan revealed in a report on Friday. The University of Michigan said the preliminary reading on its consumer sentiment index for December came in at 91.8 compared to the final November reading of 91.3. Economists had expected the index to inch up to 92.0.
Business inventories in the U.S. unexpectedly came in flat in the month of October, according to a report released by the Commerce Department on Friday. The report said business inventories were virtually unchanged in October after ticking up by a downwardly revised 0.1 percent in September.
Economists had expected inventories to inch up by 0.1 percent compared to the 0.3 percent increase that had been reported for the previous month.
Investors are eagerly awaiting next week’s announcement from the Federal Reserve policy meeting. The Fed is widely expected to announce an interest rate hike when it concludes its meeting next Wednesday.
The dollar dropped to a low of $1.1030 against the Euro Friday, but has since bounced back to around $1.0985.
Germany’s consumer prices increased at the fastest pace in six months as estimated in November, final data published by Destatis showed Friday. Inflation rose to 0.4 percent in November from 0.3 percent in October. It was the fastest since May, when prices climbed 0.7 percent.
Germany’s wholesale prices declined at a slower pace in November, figures from Destatis showed Friday. Wholesale prices slid 1.1 percent year-on-year, slower than the 1.6 percent decrease seen in October. Nonetheless, the index has been falling since July 2013.
French current account turned to a deficit in October from a surplus in the previous month, figures from the Bank of France showed Friday. The current account showed a deficit of EUR 1.4 billion in October against a surplus of EUR 0.3 billion in September.
U.K. interest rate hike expectations tumbled to its lowest level in two years, results of a quarterly survey by the Bank of England showed Friday.
The November BoE/GfK Inflation Attitudes survey showed that 35 percent Britons expect interest rates to rise over the next 12 months compared to a four-year high of 50 percent in the August round.
The balance was the lowest since November 2013, when it was 34 percent.
The buck has fallen to a 3-week low of $1.5225 against the pound sterling Friday afternoon, from around $1.5130 this morning.
British construction logged modest output growth during October, though it was the first increase in three months, data from the Office for National Statistics showed Friday. Construction output edged up 0.2 percent from September, when there was stagnation. Economists had forecast 1 percent growth. In August, output tumbled 2 percent.
The greenback has tumbled to over a 1-month low of Y120.715 against the Japanese Yen Friday afternoon, from an early high of Y122.233.
The material has been provided by InstaForex Company – www.instaforex.com