Dollar Little Changed Despite Eventful Day In Europe
December 13 2018 - 9:13AM
RTTF2
The dollar is turning in a mixed performance against its major
rivals Thursday afternoon, but remains little changed overall.
Traders are digesting some major developments from across the pond,
as well as a pair of U.S. economic reports.
A report released by the Labor Department on Thursday showed
first-time claims for U.S. unemployment benefits fell by much more
than anticipated in the week ended December 8th. The report said
initial jobless claims dropped to 206,000, a decrease of 27,000
from the previous week's revised level of 233,000.
Economists had expected jobless claims to slip to 225,000 from
the 231,000 originally reported for the previous week.
Import prices in the U.S. plunged by much more than expected in
the month of November amid a steep drop in fuel prices, according
to a report released by the Labor Department on Thursday. The
report said import prices plummeted by 1.6 percent in November
after climbing by 0.5 percent in October. Economists had expected
import prices to slump by 0.9 percent.
Additionally, the Labor Department said export prices tumbled by
0.9 percent in November following an upwardly revised 0.5 percent
advance in October. Export prices had been expected to import
prices to edge down by 0.1 percent compared to the 0.4 percent
increase originally reported for the previous month.
The European Central Bank left its interest rates unchanged on
Thursday and confirmed that it will its four-year long massive EUR
2.6 trillion Asset Purchase Programme in December, even the as the
19-nation euro area economy shows signs of a sustained
slowdown.
The bank also said it is "enhancing its forward guidance on
reinvestment."
"Accordingly, the Governing Council intends to continue
reinvesting, in full, the principal payments from maturing
securities purchased under the APP for an extended period of time
past the date when it starts raising the key ECB interest rates,
and in any case for as long as necessary to maintain favorable
liquidity conditions and an ample degree of monetary
accommodation," the ECB said in a statement.
ECB President Mario Draghi unveiled the latest set of ECB Staff
macroeconomic projections for Eurozone on Thursday, which revealed
a further downgrade to the growth projection for next year.
The euro area growth forecast for next year was trimmed to 1.7
percent from 1.8 percent. The outlook for this year was cut to 1.9
percent from 2 percent. The dollar climbed to a high of $1.1330
against the Euro Thursday, but has since retreated to around
$1.1365.
British Prime Minister Theresa May survived the confidence vote
last night. After yesterday's vote, May has vowed to deliver the
Brexit "people voted for" and also assured that she would seek
legal and political assurances from EU leaders on the Irish
backstop.
The buck has slipped to around $1.2650 against the pound
sterling Thursday afternoon, from a high of $1.2609.
The greenback has climbed to around Y113.575 against the
Japanese Yen this afternoon, from an early low of Y113.284.
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