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Dollar Little Changed As Data Drought Persists

The dollar is turning in a mixed performance against its major rivals Tuesday afternoon, but remains little changed overall. The buck is holding onto modest gains against the Euro and the pound sterling, but is down against the Japanese Yen.

The continued lack of U.S. economic data is keeping some investors on the sidelines. Import and export prices are due to be reported Wednesday morning, as well as wholesale inventories. Traders can look forward to weekly jobless claims and the producer price index on Thursday, as well as retail sales and inflation data Friday morning.

The dollar dropped to a low of $1.1975 against the Euro Tuesday, but has since bounced back to around $1.1930.

The euro area unemployment rate declined to the lowest since 2009, figures from Eurostat showed Tuesday. The jobless rate dropped to 8.7 percent in November from 8.8 percent in October. This was the lowest since January 2009. The rate came in line with expectations.

Germany’s industrial production rebounded at a faster than expected pace in November, figures from Destatis revealed Tuesday. Industrial output expanded 3.4 percent month-on-month in November, reversing a revised 1.2 percent drop in October. Output was expected to grow 1.8 percent.

Germany’s exports recovered in November and imports grew at a faster pace, data published by Destatis showed Tuesday.

Exports climbed 4.1 percent on month in November, in contrast to a 0.3 percent drop registered in October. The rate also exceeded the expected rate of 1.2 percent.

At the same time, monthly growth in imports accelerated to 2.3 percent from 1.8 percent in October. Imports were forecast to climb 0.6 percent.

The trade surplus rose to a seasonally adjusted EUR 22.3 billion from around EUR 19.9 billion in October.

France’s foreign trade gap widened in November, as exports fell faster than imports, data from the customs office showed Tuesday. The trade deficit rose to EUR 5.7 billion in November from EUR 5.3 billion in the previous month.

Meanwhile, economists had expected the deficit to narrow to EUR 4.7 billion.

The French current account gap widened in November from a month earlier, data from the Bank of France showed Tuesday. The current account deficit rose to EUR 3.3 billion in November from EUR 2.6 billion in October.

The buck climbed to a high of $1.3504 against the pound sterling Tuesday, but has since eased back to around $1.3535.

The greenback fell to a low of Y112.363 against the Japanese Yen Tuesday, but has since rebounded to around Y112.575.

Japan’s consumer confidence dropped unexpectedly in December, though slightly, survey data from the Cabinet Office showed Tuesday. The seasonally adjusted consumer confidence index decreased to 44.7 in December from November’s 50-month high of 44.9. Meanwhile, economist had expected the index to rise to 45.0.

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