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Dollar dips after weak consumer prices data

15 Juillet 2017

Year-on-year, the figure remained unchanged at 1.7%, the lowest level since June 2015. It's premature to reach the judgment that we're not on the path to 2 percent inflation over the next couple of years. Dollar-bullish investors struggled to find inspiration from Yellen's optimism during Thursday's trading session, with the Dollar Index edging towards 95.75.

As spokespeople declined to comment on the report, the combined two-day share drop wiped more than 3 billion pounds off Astra's market value.

The University of MI is due to release its preliminary report on consumer sentiment in the month of July.

After having advanced to a 2-day high of 113.58 against the Japanese yen at 9:00 pm ET, the greenback hit an 11-day low of 112.27.

Other than the yen, the dollar was on the gaining side with the rest of the major currencies including a 0.2 boost to 0.9695 against the Swiss franc.

Yellen's acknowledgement on Wednesday that there are concerns within the Fed about persistent low inflation meant the currency was hit quite hard on Friday as traders revised lower their expectations for another rate hike this year.

With the euro dampened by European Central Bank taper angst, the pound rose 0.64% past the 0.876 mark for the first time since 20 June. It touched on Wednesday its strongest in almost 13 months at C$1.2681.

Oil prices traded higher as Brent crude futures rose 1.35 percent to trade at $48.16 per barrel, while US WTI crude futures gained 1.53 percent to trade at $45.73 a barrel.

USA consumer prices remained unchanged in June, indicating inflation may remain stuck below the goal of the US central bank for a long time.

The Fed has frequently been overly optimistic about its predictions for rate hikes in the post-recession era. That followed a report that the European Central Bank is likely to signal in September that its asset purchase programme will be gradually wound down next year.

The question now is whether the market will resume its uptrend after the rest, continue sideways or even fall - either of the three outcomes seems possible at this juncture.

US equities notched new record highs on Friday - but perhaps not for the reasons many investors think.

Most economists previously had expected the USA central bank to raise rates at its September meeting, but the odds of that fell when the disappointing data were published.

The benchmark 10-year US Treasury note rose 8/32 in price to yield 2.3212 per cent. The core CPI increased 1.7% year-on-year - still short of the Fed's 2% target.

For the week, silver is on track for a gain of around 1.5%.

August gold gained $10.20, or 0.8%, to settle at $1,227.50/oz. The contract finished the week up 1.5 percent, its first gain in six weeks.

The US dollar added 0.08 percent to 1.3746 against the Singapore dollar while the Malaysian ringgit was up 0.01 percent to 4.2908.

Meanwhile, U.S. stock futures pointed to a mixed open.

Dollar dips after weak consumer prices data