The U.S. dollar was weak against most of its peers on Wednesday, reacting to recent updates on potential coronavirus vaccine and the latest batch of economic data.
UK Chancellor of the Exchequer Rishi Sunak on Wednesday boosted spending on infrastructure and plans to create jobs for the unemployed as official forecasts pointed to the worst economic contraction in over 300 years due to the impact of the coronavirus pandemic.
The Commerce Department released a report on Wednesday showing a decrease in U.S. personal income in the month of October. The report said personal income fell by 0.7 percent in October after climbing by a downwardly revised 0.7 percent in September.
Revised data released by the University of Michigan on Wednesday showed consumer sentiment in the U.S. deteriorated by slightly more than expected in the month of November. The report said the consumer sentiment index for November was downwardly revised to 76.9 from a preliminary reading of 77.0.
New home sales in the U.S. unexpectedly edged lower in the month of October, according to a report released by the Commerce Department on Wednesday. The Commerce Department said new home sales dipped by 0.3 percent to an annual rate of 999,000 in October after inching up by 0.1 percent to a revised rate of 1.002 million in September.
New orders for U.S. manufactured durable goods increased by more than expected in the month of October, the Commerce Department revealed in a report on Wednesday. The Commerce Department said durable goods orders jumped by 1.3 percent in October after spiking by 2.1 percent in September. Economists had expected durable goods orders to climb by 0.9 percent.
Fist-time claims for U.S. unemployment benefits unexpectedly increased in the week ended November 21st, according to a report released by the Labor Department on Wednesday. The report said initial jobless claims climbed to 778,000, an increase of 30,000 from the previous week's revised level of 748,000.
UK Chancellor Rishi Sunak is set to unveil spending review for the financial year 2021-22 on Wednesday. Due to uncertainty caused by the coronavirus pandemic, Sunak has reduced the review period to one year from three years. The announcement is due at 7.00 am ET.
The U.S. dollar stayed weak against most of its peers on Tuesday as positive developments on the U.S. political front, and continued optimism about coronavirus vaccine resulted in improved risk sentiment and dimmed the currency's safe-haven appeal.
German business sentiment deteriorated in November as companies were more pessimistic about future amid the second wave of coronavirus infections interrupting the economic recovery, survey results released by the Munich-based ifo Institute showed on Tuesday. The business climate index fell to 90.7 in November from revised 92.5 in the previous month.
Following the relaxation of Covid-19 restrictions, the German economy rebounded at a faster than expected pace in the third quarter, offsetting a large part of the massive contraction in the second quarter, revised data from Destatis revealed on Tuesday. Gross domestic product grew 8.5 percent sequentially in the third quarter, reversing the 9.8 percent decline in the second quarter caused by the
Business confidence survey results and revised quarterly national accounts from Germany are due on Tuesday, headlining a light day for the European economic news. At 2.00 am ET, Destatis is slated to issue Germany's revised quarterly GDP data for the third quarter. The economy is forecast to grow 8.2 percent sequentially, as initially estimated.
The U.S. dollar fell in the Asian session on Monday and hit its lowest level since April 2018, but recovered to move above the flat line later in the session, scoring gains against some of its peers.
The UK private sector contracted the most in six months in November due to the fastest reduction in service sector output since May amid temporary closures among leisure and hospitality companies, flash survey results revealed Monday. The IHS Markit/Chartered Institute of Procurement & Supply composite output index dropped to 47.4 in November from 52.1 in October.
The euro area private sector contracted sharply in November as member countries reintroduced more restrictions to counter the spread of Covid-19 infection, flash survey data from IHS Markit showed Monday. The composite output index plunged to a six-month low of 45.1 from the neutral 50.0 in October. The score was forecast to fall to 45.8.