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Dollar Losing Ground Ahead Of Data Deluge

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The dollar got off to a positive start Wednesday, but has turned lower over the course of the trading session. Traders are looking forward to a large number of economic reports over the next two days.

Weekly jobless claims and inflation data are due to be released Thursday morning, while retail sales, industrial production and consumer sentiment are among the numerous reports slated for Friday.

A report released by the Federal Reserve on Wednesday said the U.S. economy expanded at a moderate pace through the end of August.

The Fed's Beige Book is a compilation of anecdotal evidence on economic conditions in the twelve Fed districts released shortly before the central bank makes its decision on monetary policy.

The Beige Book said Dallas reported relatively brisk growth, while Philadelphia, St. Louis, and Kansas City indicated somewhat below average growth.

The report also said consumer spending continued to grow at a modest pace since the last report, and tourism activity expanded, to varying degrees, across the nation.

Producer prices in the U.S. unexpectedly saw a modest decrease in the month of August, according to a report released by the Labor Department on Wednesday. The Labor Department said its producer price index for final demand edged down by 0.1 percent in August after coming in unchanged in July. Economists had expected prices to rise by 0.2 percent.

The dollar rose to an early high of $1.1570 against the Euro Wednesday, but has since retreated to around $1.1635.

Eurozone industrial production decreased for the second straight month in July, Eurostat reported Wednesday. Industrial output slid 0.8 percent month-on-month in July, the same pace of decline as seen in June. Economists had forecast a moderate drop of 0.5 percent.

The buck climbed to an early high of $1.2979 against the pound sterling Wednesday, but has since eased back to around $1.3050.

The greenback has pulled back to around Y111.225 against the Japanese Yen this afternoon, from an early high of Y111.632.

by RTTNews Staff Writer

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