The dollar is up modestly against all of its major rivals Wednesday afternoon, but has begun to pare its gains against the Euro and the Japanese Yen following the release of the Fed's Beige Book
The Federal Reserve's Beige Book observed all twelve Fed districts were equally split between modest and moderate economic growth in the past few months.
On the labor market, "a larger number of firms mentioned high turnover rates and more difficulty retaining workers." Modest wage pressures broadened during the most recent survey period.
In the southeast, employers "struggle to find, hire and hold onto quality workers, particularly in skilled technical jobs, but also in sales, finance, information technology, and compliance positions."
Inflation pressures remained in check, as prices rose slightly.
There were no U.S. economic reports this morning, but investors can look forward to the release of weekly jobless claims, the Philly Fed index and the leading economic indicator on Thursday. Existing home sales is also slated for Friday.
The dollar climbed to a high of $1.0699 against the Euro Wednesday, but has since eased back to around $1.0715.
Eurozone inflation slowed as estimated initially to a three-month low in March, latest data from Eurostat showed Wednesday.
The harmonized consumer price index rose 1.5 percent year-on-year after 2 percent increase in February, which was the highest since January 2013. The figure was in line with its flash estimate released on March 31.
Eurozone trade surplus increased more-than-expected in February, as exports rose and imports fell, figures from Eurostat showed Wednesday. The seasonally adjusted trade surplus climbed to EUR 19.2 billion in February from EUR 15.7 billion in the previous month. Economists had expected the surplus to rise to EUR 18.5 billion.
British Prime Minister Theresa May's surprise call for holding an early election on June 8 won MPs approval on Wednesday.
The House of Commons voted 522-13, which was more than the two-third majority needed, for having the snap poll that May announced unexpectedly on Tuesday.
The buck has rebounded to around $1.2790 against the pound sterling Wednesday, after dropping to a 6-month low of around $1.29 yesterday.
British households' current financial pressures intensified in April, as rising inflation and subdued pay growth have created a renewed squeeze on cash available to spend, results of a survey by IHS Markit and market research company Ipsos Mori revealed Wednesday.
The seasonally adjusted Household Finance Index, of HFI, dropped 42.5 in April from 43.1 in March. This was one of the lowest readings seen since the summer of 2014.
The greenback rose to a high of Y109.182 against the Japanese Yen Wednesday, but has since retreated to around Y108.750.
by RTT Staff Writer
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