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Dollar loses ground after PPI data, UoM report ahead

ForexDec 12, 2014 09:07AM ET
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Dollar falls against most rivals as U.S. PPI data disappoints

Investing.com - The dollar fell against most other major currencies on Friday, after the release of disappointing U.S. producer price inflation data and as investors eyed an upcoming report on consumer sentiment.

The U.S. Department of Labor reported that producer price inflation fell 0.2% last month, compared to expectations for a 0.1% downtick, after a 0.2% rise in October.

Core producer price inflation, which excludes food, energy and trade, was flat in November, confounding expectations for a 0.1% rise, after an increase of 0.4% the previous month.

But the dollar still remained supported after strong retail sales numbers on Thursday boosted expectations for the Federal Reserve to hike interest rates earlier in 2015 than once anticipated, possibly in the middle of the year.

The U.S. dollar index, which measures the greenback against a basket of six major currencies, was down 0.30% at 88.32, not far from Monday's five-year high of 89.53.

EUR/USD rose 0.38% to 1.2454, after data showed that industrial production in the euro zone rose 0.1% in October, in line with expectations, after a 0.5% increase in September, whose figure was revised from a previously estimated 0.6% gain.

Year-on-year, the bloc's industrial production increased 0.7% in October, compared to expectations for a 0.5% rise, after a revised 0.2% uptick in September.

The yen and the Swiss franc were also higher, with USD/JPYslipping 0.19% to 118.48 and USD/CHF down 0.40% to 0.9643.

EUR/CHF was little changed at 1.2009, after the Swiss National Bank left rates unchanged on Thursday and reiterated that it will defend the 1.20 per euro exchange rate cap.

The pound was almost unchanged, with GBP/USD at 1.5722 after the U.K. Office for National Statistics said construction output declined 2.2% in October, disappointing expectations for a 0.8% rise.

Construction output rose 2.2% in September, whose figure was revised from a previously estimated 1.8% gain.

The Australian, New Zealand and Canadian dollars were broadly weaker, with AUD/NZD down 0.16% to 0.8256 and NZD/USD sliding 0.29% 0.7793, while USD/CAD gained 0.36% to trade at 1.1563.

The commodity-linked currencies were under pressure after official data earlier showed that industrial production in China rose 7.2% in November, confounding expectations for an increase of 7.5%, after a 7.7% gain in October.

The lower-than-expected data sparked concerns over a slowdown in the world's second largest economy.

Dollar loses ground after PPI data, UoM report ahead
 

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