The dollar is little changed in comparison to its major competitors on Wednesday. Economic data from the United States was relatively mixed at mid-week, with better than expected industrial production and weaker than anticipated homebuilder confidence.
Consumer prices in the U.S. came in unchanged in the month of December, according to a report released by the Labor Department on Wednesday, with a sharp drop in gasoline prices offsetting higher prices for food and shelter.
The Labor Department said its consumer price index was unchanged in December after falling by 0.3 percent in November. The unchanged reading matched economist estimates.
Industrial production in the U.S. increased by slightly more than expected in the month of December, the Federal Reserve revealed in a report on Wednesday, with increased manufacturing and mining output more than offsetting a sharp drop in utilities output.
The report showed that industrial production increased by 0.3 percent in December following a revised 1.0 percent jump in November. Economists had expected production to edge up by 0.2 percent compared to the 1.1 percent growth originally reported for the previous month.
Following eight consecutive monthly gains, homebuilder confidence in the U.S. held steady in January, according to a report released by the National Association of Home Builders on Wednesday. The report showed that the NAHB/Wells Fargo Housing Market Index came in at 47 in January, unchanged from December. Economist had expected the index to inch up to 48.
The euro’s exchange rate is “alarmingly high” and is likely to affect the Eurozone economy which is showing signs of stability, Eurogroup President Jean-Claude Juncker said Tuesday.
While speaking at the annual gathering of business leaders in Luxemberg, Junker warned that an overvalued euro is likely to threaten the economy that is reemerging from financial crisis.
Junker’s comments came just few days after European Central Bank President Mario Draghi’s statement that the euro area may see a gradual recovery later in the year as there are some modest signs of stabilization.
The dollar is trading basically flat in comparison to the Euro on Wednesday, hovering around the $1.3300 level.
Eurozone inflation remained unchanged at 2.2 percent in December as initially estimated, final data released by Eurostat showed Wednesday. The latest figure is the lowest since November 2010. Inflation has been hovering above the central bank’s threshold limit of 2 percent for many months.
The number of people worked in local manufacturing units in Germany rose by about 79,000 or 1.5 percent in November from a year ago, Destatis reported Wednesday. Around 5.2 million people were employed in manufacturing.
Germany’s general government debt increased from last year in the third quarter, data released by the Federal Statistical Office showed Wednesday. Total federal debt, including those of governments, states, and municipalities/associations, increased 1.6 percent from last year to EUR 2064.1 billion at the end to the third quarter.
The greenback has climbed from around $1.6075 against the pound sterling to over a month and a half high of $1.5974.
The buck fell to a 4-session low of Y87.784 against the Japanese Yen on Wednesday, but has since rebounded to around Y88.550.
Core machine orders in Japan climbed a seasonally adjusted 3.9 percent on month in November to 732.1 billion yen, the Cabinet Office said on Wednesday, rising for the second straight month. The headline figure shattered forecasts for an increase of 0.3 percent following the 2.6 percent gain in October and the 4.3 percent contraction in September.
Japan’s consumer confidence deteriorated for the fourth successive month in December and hit the lowest level in one year, a survey by the Cabinet Office revealed Wednesday. The seasonally adjusted consumer confidence index dropped to 39.2 in December from 39.4 in November. This was the weakest index reading since December 2011. Confidence deteriorated for the fourth month in a row.