Dollar Mixed After U.S. Consumer Inflation

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The U.S. dollar came in mixed against its major counterparts in the European session on Thursday, after a report showed that U.S. consumer inflation was flat in October.

Data from the Labor Department showed that U.S. consumer price index was unchanged in October after rising by 0.2 percent in September. Economists had expected another 0.2 percent uptick.

Excluding food and energy prices, consumer prices were still flat in October after edging up by 0.2 percent in September. Core prices were also expected to inch up by another 0.2 percent.

Separate data showed that U.S. jobless claims dropped more than expected in the week ended November 7.

The Labor Department said initial jobless claims fell to 709,000, a decrease of 48,000 from the previous week’s revised level of 757,000.

U.S. infections hit a record, with New York introducing new restrictions to prevent a second wave wave of Covid-19. Bars, restaurants and gyms will close by 10 pm ET and the number of people who could attend private parties will be limited to a maximum of 10.

The currency showed mixed trading against its major counterparts in the Asian session. While it rose against the pound, it fell against the euro and the yen. Versus the franc, it was steady.

The greenback climbed to a 3-day high of 1.3132 against the pound, compared to yesterday’s closing value of 1.3218. Next immediate resistance for the greenback is likely seen around the 1.28 level.

Data from the Office for National Statistics showed that gross domestic product grew 15.5 percent sequentially in the third quarter.

Economists had forecast an expansion of 15.8 percent after decreasing 19.8 percent in the second quarter and 2.5 percent in the first quarter.

The greenback rebounded to 0.9165 against the franc, from a session’s low of 0.9133 seen at 5:00 am ET. If the currency rallies further, 0.94 is seen as its next resistance level.

The greenback dropped to 1.1833 against the euro and was steady thereafter. The pair was worth 1.1777 when it closed deals on Wednesday.

Final data from Destatis showed that German consumer prices decreased in October, as initially estimated.

The consumer prices fell 0.2 percent year-on-year in October, same as seen in September, as initially estimated.

The greenback was lower against the yen, with the pair trading at 105.21. The pair had closed Wednesday’s deals at 105.43. The greenback is likely to challenge support around the 101.00 level.

Data from the Ministry of Economy, Trade and Industry showed that Japan’s tertiary activity rose for the fourth month in a row in September.

The tertiary activity index rose 1.8 percent month-on-month in September, following a 0.8 percent increase in August.

The material has been provided by InstaForex Company – www.instaforex.com

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