Dollar Mixed After U.S. Consumer Inflation Data
The U.S. dollar showed mixed trading against its major rivals in the European session on Wednesday, following the release of a data showing modest increase in the nation’s consumer prices in the month of February.
The Labor Department said its consumer price index inched up by 0.1 percent in February, matching the uptick seen in January. Economists had expected prices to come in unchanged.
Consumer prices edged higher as higher prices for food and shelter more than offset a steep drop in energy prices.
Core consumer prices, which exclude food and energy prices, rose by 0.2 percent for the second consecutive month. The increase in core prices matched economist estimates.
President Donald Trump on Tuesday failed to provide any concrete details about a proposed U.S. stimulus plan.
Traders seem to be expressing continued uncertainty about whether expected stimulus measures will be adequate to soften the economic blow from the outbreak.
The greenback dropped in the previous session, as Trump’s stimulus plans underwhelmed expectations.
The greenback fell back to 0.9326 against the franc, compared to yesterday’s closing value of 0.9400. The greenback is seen finding support around the 0.92 mark.
The greenback was trading at 1.1340 against the euro, down from yesterday’s closing quote of 1.1280. If the greenback falls further, it is likely to test support around the 1.15 region.
The greenback held steady against the pound, after having retreated from a 1-week high of 1.2830 seen at 3:00 am ET. The pair had finished Tuesday’s deals at 1.2903.
Data from the Office for National Statistics showed that the UK economy stagnated in January as the expansion in the service sector was offset by falling industrial and construction output.
Gross domestic product remained flat on month in January after expanding 0.3 percent in December. Economists had forecast a monthly growth of 0.2 percent.
The greenback remained lower against the yen at 104.60. The greenback is poised to challenge support around the 102.00 mark.
The U.S. monthly budget statement for February is scheduled for release in the New York session.