Dollar Trading Mixed On Light Data Day
The dollar is turning in a mixed performance against its major rivals Tuesday afternoon. The buck is losing ground against the British pound after the bigger than expected increase in UK inflation. The data will put further pressure on the Bank of England to consider raising interest rates.
The continued lack of U.S. economic data is keeping some investors on the sidelines. Things will begin to pick up on the economic front tomorrow morning, with the release of the producer price index.
Weekly jobless claims and the consumer price index are slated for Thursday, while retail sales, industrial production and consumer sentiment are also due to be released on Friday.
The dollar rose to an early high of $1.1925 against the Euro Tuesday, but has since slipped back to around $1.1965, nearly unchanged for the day.
The buck has dropped to a 1-year low of $1.3285 against the pound sterling Tuesday afternoon, from an early high of $1.3159.
UK inflation climbed more-than-expected in August to its joint highest level in over five years, driven by strong increase in clothing and petrol prices, and added pressure on the Bank of England rate-setters to raise interest rates amid the Brexit-fueled economic uncertainty.
The consumer price index rose 2.9 percent year-on-year following 2.6 percent increase in July. Economists had forecast 2.8 percent inflation.
British house price inflation held steady in July after accelerating in the prior month, figures from the Office for National Statistics showed Tuesday. The house price index climbed 5.1 percent year-over-year in July, the same rate of rise as in June, which was revised up from a 4.9 percent increase reported earlier.
The greenback has climbed to over a 1-week high of Y110.115 against the Japanese Yen this afternoon, from an early low of Y109.283.