Breaking News

EUR/USD Advances Above $1.20, Pressures Dollar to Lows

ForexJan 11, 2018 01:26PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items

Investing.com – The dollar fell sharply against a basket of major currencies amid a duo of weaker-than-estimated economic reports while a sharp uptick in euro added to downside momentum.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell 0.51% to 91.63.

The Labor Department said Thursday its producer price index for final demand fell 0.1% last month after rising 0.2% in November. In the 12 months through November, the PPI rose 2.6, missing expectation for a 3% rise.

The softer wholesale inflation data renewed inflation jitters, easing investor optimism for a more aggressive Federal Reserve stance on monetary policy as investors awaited a consumer inflation report due Friday.

RBC said the softer PPI data signalled “downside risk” to the consumer prices index (CPI) data slated for Friday, noting that the finished consumer goods component fell 0.4% after an impressive 1.7% gain in November.

In a separate report, The U.S. Department of Labor reported Thursday that initial jobless claims increased 11,000 to a seasonally adjusted 261,000 for the week ended Jan. 5, missing forecasts of a 4,000 decrease.

Amherst noted that jobless claims reached their highest since September but remained confident that initial claims should return to “normal” as seasonally volatility is expected to disappear in the coming weeks.

The dollar had started the session on the front foot after reversing some of Wednesday’s losses as China rejected a media report suggesting it plans to slow or halt US Treasury bonds purchases, saying it is either “fake news” or based on incorrect sources.

Also weighing on the dollar was a sharp move higher in the euro above $1.20, following the release of hawkish European Central Bank (ECB) minutes.

The European Central Bank could consider a gradual shift in guidance from early 2018, the minutes of the ECB December meeting showed, as policymakers saw ‘some comfort' in wage dynamics despite ongoing concerns over subdued inflation.

USD/JPY fell 0.22% to Y111.19, while USD/CAD fell 0.16% to C$ 1.2530 as North American Free Trade Agreement (NAFTA) jitters continued to weigh on the loonie.

GBP/USD rose 0.22% to $1.3537 as traders await next Tuesday's release of UK consumer price index (SPI) data for direction.

EUR/USD Advances Above $1.20, Pressures Dollar to Lows

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Are you sure you want to delete this chart?
Write your thoughts here
Replace the attached chart with a new chart ?
Post also to:
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Carrascal Eduardo
Edouard Jan 11, 2018 7:40PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If we break the historical equilibriums of International Trade and in some unconventional way we come to alter the value of currencies or monetary balances ... in the short term we wicked ... in the medium term it would be the disastrous germ of a new and more virulent crisis. .... historica .. this time really yes si
0 0
Carrascal Eduardo
Edouard Jan 11, 2018 7:34PM GMT
Saved. See Saved Items.
This comment has already been saved in your Saved Items
taking into account the different stages of evolution of the major economies and the delay in the recovery cycle of all of them, especially in the US, with respect to the USA it is difficult to understand the downward trend of the $, item plus the specific stimuli in the USA. as the TAX reform, higher real interests..etc. So we should ask ourselves is the market really an open market or in a certain way subject to certain political design? Who knows ? explain it, please
0 0
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Post 1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email