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Dollar Mixed Ahead Of Inflation Data


The dollar is turning in a mixed performance against its major rivals Thursday afternoon, but is little changed overall. Weekly jobless claims came in better than expected this morning, while producer prices were in line with expectations. Traders are looking forward to the release of the consumer price index tomorrow morning, as well as retail sales and consumer sentiment.

First-time claims for U.S. unemployment benefits fell by more than anticipated in the week ended October 7th, according to a report released by the Labor Department on Thursday. The report said initial jobless claims dropped to 243,000, a decrease of 15,000 from the previous week's revised level of 258,000.

Economists had expected jobless claims to dip to 251,000 from the 260,000 originally reported for the previous week.

Partly reflecting another jump in energy prices, the Labor Department released a report on Thursday showing that U.S. producer prices increased in line with economist estimates in the month of September. The Labor Department said its producer price index for final demand climbed by 0.4 percent in September after edging up by 0.2 percent in August.

The dollar has climbed to around $1.1840 against the Euro Thursday afternoon, from an early low of $1.1879.

Eurozone industrial output expanded at the fastest pace in nine months in August, largely driven by production of capital goods. Industrial production grew by a more-than-expected 1.4 percent month-on-month in August, faster than the 0.3 percent rise seen in July, data from Eurostat showed Thursday.

This was the biggest increase since November 2016, when output grew 1.6 percent. Economists had forecast a monthly 0.6 percent increase.

France's consumer price inflation rose to a five-month high in September, final data from the statistical office Insee showed Thursday. Inflation rose to 1 percent in September, as estimated, from 0.9 percent in August. This was the fastest rate since April, when inflation was 1.2 percent.

The buck has dropped to a 1-week low of $1.3275 against the pound sterling Thursday afternoon, from an early high of $1.3120.

House prices in the United Kingdom moved higher again in September, the latest survey from the Royal Institution of Chartered Surveyors showed on Thursday with a house price balance of 6.0 percent. That was unchanged from the August reading, and it beat expectations for a gain of 4.0 percent.

The greenback rose to a high of Y112.462 against the Japanese Yen Thursday morning, but has since eased back to around Y112.175.

Producer prices in Japan were up 0.2 percent on month in September, the Bank of Japan said on Thursday. That was in line with expectations following the flat reading in August.

Overall bank lending in Japan was up 3.0 percent on year in September, the Bank of Japan said on Thursday, coming in at 516.810 trillion yen. That was shy of expectations for an increase of 3.2 percent, which would have been unchanged from the August reading.

Japan's tertiary activity contracted unexpectedly in August, data from the Ministry of Economy, Trade and Industry revealed Thursday. The tertiary industry activity dropped 0.2 percent month-on-month in August, reversing a 0.1 percent rise in July. Economists had forecast an increase of 0.1 percent.

by RTTNews Staff Writer

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