FOREX TradingCharts.com

Forex News: U.S. Dollar Falls Despite Strong Inflation Data

U.S. Dollar Falls Despite Strong Inflation Data

10/13/2021 - 10:45:00 (RTTNews)

(RTTNews) - The U.S. dollar depreciated against its major counterparts in the European session on Wednesday, despite the release of upbeat U.S. consumer inflation data for September.

Data from the Labor Department showed that the consumer price index climbed 0.4 percent in September after rising by 0.3 percent in August. Economists had been expecting another 0.3 percent increase.

Excluding food and energy prices, core consumer prices edged up by 0.2 percent in September after inching up by 0.1 percent in August. The uptick in core prices matched economist estimates.

The report showed the annual rate of growth in consumer prices accelerated to 5.4 percent in September from 5.3 percent in August, while the annual rate of growth in core prices was unchanged at 4.0 percent.

Traders are awaiting the Fed minutes from the September meeting due at 2:00 pm ET. The minutes could shed more insights about the discussions on the tapering timeline as well as the timing of the rate hike.

Market participants expect the Fed to announce the start of tapering asset purchases at its meeting next month.

The greenback fell against its key counterparts in the Asian session, except the franc.

The greenback pulled back to 113.35 against the yen, after touching 113.80 at 8.30 am ET, a level unseen since December 2018. The pair had closed Tuesday's deals at 113.61. The greenback is likely to challenge support around the 109.00 level.

Data from the Cabinet Office showed that Japan core machine orders fell a seasonally adjusted 2.4 percent on month in August - coming in at 839.3 billion yen.

That missed expectations for an increase of 1.7 percent following the 0.9 percent gain in July.

The greenback dropped to 0.9265 against the franc, from Tuesday's close of 0.9300. If the greenback falls further, it may test support around the 0.90 level.

The greenback touched a 2-day low of 1.1571 against the euro, down from yesterday's close of 1.1530. The greenback may locate support around the 1.17 level.

Data from Eurostat showed that Eurozone industrial output declined for the first time in three months in August.

Industrial output dropped 1.6 percent month-on-month in August, reversing a 1.4 percent rise in July. The pace of decline matched economists' expectations and this was the first fall since June.

The greenback declined to a 2-day low of 1.3647 against the pound, compared to Tuesday's closing value of 1.3584. The greenback is poised to challenge support around the 1.40 mark.

Data from the Office for National Statistics showed that the UK economy recovered in August.

Gross domestic product grew 0.4 percent on month, but slightly slower than the economists' forecast of 0.5 percent.

The greenback eased off to 0.7366 against the aussie and 0.6956 against the kiwi, from a 2-day high of 0.7324 and a 5-day high of 0.6912 ,respectively seen in early trades. The next likely support for the greenback is seen around 0.75 against the aussie and 0.72 against the kiwi.

In contrast, the greenback rebounded to 1.2471 against the loonie, from a low of 1.2435 seen at 4:30 am ET. On the upside, 1.26 is possibly seen as its next resistance level.

The Fed minutes from the September 21-22 meeting are set for release at 2:00 pm ET.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com. All Rights Reserved

Market News provided by RTTNews

RECENT FOREX and ECONOMIC NEWS STORIES


U.S. Dollar Recovers From NFP-led Losses (02 hr(s), 30 min(s), 07 sec(s) ago)
(RTTNews) - After a pullback following the release of weak U.S. jobs data for November, the U.S. d ...Full Story»

Loonie Spikes Up After Canada Jobs Data (04 hr(s), 51 min(s), 07 sec(s) ago)
(RTTNews) - Following the release of Canada jobs data for November at 8:30 am ET Friday, the looni ...Full Story»

Dollar Falls Following U.S. Jobs Data (04 hr(s), 54 min(s), 07 sec(s) ago)
(RTTNews) - The U.S. jobs data for November has been released at 8:30 am ET Friday. The greenback ...Full Story»

Dollar Mixed Ahead Of U.S. Jobs Data (05 hr(s), 0 min(s),06 sec(s) ago)
(RTTNews) - The U.S. jobs data for November is due at 8:30 am ET Friday. Ahead of the data, the gr ...Full Story»

Euro Advances As Omicron Concerns Ease (06 hr(s), 36 min(s), 07 sec(s) ago)
(RTTNews) - The euro climbed against its most major counterparts in the European session on Friday ...Full Story»

Pound Little Changed After U.K. Composite PMI (08 hr(s), 54 min(s), 07 sec(s) ago)
(RTTNews) - At 4.30 am ET Friday, UK Markit/CIPS final composite Purchasing Managers' survey d ...Full Story»

Pound Mixed Ahead Of U.K. Composite PMI (09 hr(s), 0 min(s),07 sec(s) ago)
(RTTNews) - At 4.30 am ET Friday, UK Markit/CIPS final composite Purchasing Managers' survey d ...Full Story»

Euro Little Changed After Eurozone PMI (09 hr(s), 24 min(s), 07 sec(s) ago)
(RTTNews) - Eurozone final composite survey results have been released at 4.00 am ET Friday. The e ...Full Story»

Search

FOREX NEWS

U.S. Dollar Recovers From NFP-led Losses

12/03/2021 - 10:58 AM (RTTNews)
(RTTNews) - After a pullback following the release of weak U.S. jobs data for November, the U.S. d ...Full Story>>

Loonie Spikes Up After Canada Jobs Data

12/03/2021 - 08:37 AM (RTTNews)
(RTTNews) - Following the release of Canada jobs data for November at 8:30 am ET Friday, the looni ...Full Story>>

Dollar Falls Following U.S. Jobs Data

12/03/2021 - 08:34 AM (RTTNews)
(RTTNews) - The U.S. jobs data for November has been released at 8:30 am ET Friday. The greenback ...Full Story>>

Dollar Mixed Ahead Of U.S. Jobs Data

12/03/2021 - 08:30 AM (RTTNews)
(RTTNews) - The U.S. jobs data for November is due at 8:30 am ET Friday. Ahead of the data, the gr ...Full Story>>

Euro Advances As Omicron Concerns Ease

12/03/2021 - 06:54 AM (RTTNews)
(RTTNews) - The euro climbed against its most major counterparts in the European session on Friday ...Full Story>>

Do not sell my personal information

Copyright © 2021. All market data is provided by Barchart Solutions. Information is provided "as is" and solely for informational purposes, not for trading purposes or advice. To see all exchange delays and terms of use, please see disclaimer.