Dollar Mixed After Deluge Of Economic Data

The dollar is currently trading with mixed results on Thursday, following the release of a large number of economic reports. The U.S. currency is nearly unchanged in comparison to the Euro, up slightly against the pound sterling and down against the Japanese Yen.

First-time claims for U.S. unemployment benefits showed a modest decrease in the week ended January 11th, according to a report released by the Labor Department on Thursday, with claims falling to their lowest level in over a month.

The report said initial jobless claims edged down to 326,000, a decrease of 2,000 from the previous week’s revised figure of 328,000. Economists had expected jobless claims to dip to 328,000 from the 330,000 originally reported for the previous week.

With energy prices showing a notable rebound, the Labor Department released a report on Thursday showing that U.S. consumer prices rose in line with economist estimates in the month of December.

The Labor Department said its consumer price index rose by 0.3 percent in December after coming in unchanged in November. The price growth, which matched the expectations of economists, reflected the biggest monthly increase since June.

Manufacturing growth in the Philadelphia-area continued in January, according to a report released by the Federal Reserve Bank of Philadelphia on Thursday, with the index of regional manufacturing activity rising by more than expected.

The Philadelphia Federal Reserve said its diffusion index of current activity rose to 9.4 in January from a revised 6.4 in December, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to climb to 8.7.

After reporting a significant improvement in homebuilder confidence in the previous month, the National Association of Home Builders released a report on Thursday showing a modest pullback in confidence in the month of January.

The report said the NAHB/Wells Fargo Housing Market Index edged down to 56 in January from a downwardly revised 57 in December. Economists had expected the index to come in unchanged compared to the 58 originally reported for the previous month.

The United States economy expanded at a moderate pace in the final weeks of 2013, according to the Federal Reserve’s collection of anecdotal information known as the Beige Book.

Two-thirds of the 12 districts reported increases in hiring, with most districts expecting the “more of the same” into the new year.

Three-quarters of the Districts indicated that retail activity had increased since the last Beige Book report. All Districts reported year-over-year increases in manufacturing activity.

The recovery in housing continued in most regions. Although a few Districts indicated home sales or residential construction in some areas had slowed or declined in recent months, most cited increased residential sales activity and construction as well as rising home prices.

The Bank of Japan on Thursday upgraded its assessment for five of the nine regions in Japan, according to a report published by the central bank.

The BoJ’s view for the rest of the four regions was left unchanged from that in the previous outlook report released in October.

“All regions reported that the economy has been recovering or recovering moderately, reflecting firm domestic demand, a moderate increase in production, and improvement in the employment and income situation,” the bank said in the report.

The dollar reached an early high of Y104.913 against the Japanese Yen on Thursday, following 2 days of solid gains, but has since retreated to around Y104.175.

Core machine orders in Japan jumped a seasonally adjusted 9.3 percent on month in November, the Cabinet Office said on Thursday, coming in at 882.6 billion yen. The headline figure shattered forecasts for an increase of 1.1 percent following the 0.6 percent gain in October.

An index tracking the prices of domestic corporate goods was up 0.3 percent in December compared to the previous month, the Bank of Japan said on Thursday, standing at 102.8. That matched forecasts following the downwardly revised flat reading in November.

An index measuring tertiary industry activity in Japan was up a seasonally adjusted 0.6 percent in November compared to the previous month, the Ministry of Economy, Trade and Industry said on Thursday, coming in at 100.1. That missed forecasts for an increase of 0.7 percent following the downwardly revised 0.9 percent contraction in October.

The greenback fell to a low of $1.3649 against the Euro on Thursday, but has since bounced back to around $1.3600, nearly unchanged for the session.

Eurozone inflation eased to 0.8 percent as initially estimated in December, according to final data from Eurostat, released Thursday. The rate was down from 0.9 percent in November. Inflation has stayed below the European Central Bank’s target of ‘below, but close to 2 percent’ for the eleventh consecutive month.

Germany’s EU harmonized inflation slowed in December, in line with the preliminary estimates, final data released by the Federal Statistical Office revealed Thursday. The harmonized index of consumer prices (HICP) increased 1.2 percent in December from the same month of last year, which was in line with the flash estimates. In November, the HICP had recorded a 1.6 percent gain.

The buck dipped to a low of $1.6382 against the pound sterling on Thursday, but has since climbed to around $1.6340.

An index monitoring house prices in the United Kingdom came in with a score of 56 percent in December, the latest survey from the Royal Institution of Chartered Surveyors revealed on Thursday. That was shy of forecasts for 60 percent, and down from the reading of 58 percent in November, although the index remained above 50 percent for the fourth consecutive month.

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

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