The greenback garnered fresh support against the majors in the Thursday session on the heels of the US economic reports released earlier in the morning. The dollar bounced higher to 1.4578 against the euro and 2.0345 versus the sterling, while the yen continued to recoup from yesterday’s central bank induced losses. US equities managed to stage a rebound in afternoon trading to near breakeven for the day after slumping earlier in the session.
The data released in the morning consisted of weekly jobless claims, retail sales and the producer price index. Weekly jobless claims slipped to 333k, down from 338k in the previous week. Retail sales surprised to the upside, with the excluding autos figure jumping by 1.8% in November versus 0.2% from the previous month. The headline reading for retail sales rose by 1.2% from 0.2%. Meanwhile, inflation data released earlier validated the FOMC’s decision to ease by 25-basis points earlier in the week, instead of succumbing to overwhelming market demands for a 50-bp ease. November PPI posted its largest monthly gain since 1973 at 3.2%, while core prices rose by 0.4%. The inflation report will likely prevent the FOMC from easing aggressively and will shift the focus to tomorrow’s CPI inflation report.
Also worth noting, former Fed Chairman Greenspan raised his chances for a US economic recession to 50%, up from 30%. Traders will continue to closely monitor US reports for any signs of further deterioration and evidence of spillover from the housing market woes and financial market turbulence on the economy as a whole, particularly consumer confidence and consumption.
The data released in the morning consisted of weekly jobless claims, retail sales and the producer price index. Weekly jobless claims slipped to 333k, down from 338k in the previous week. Retail sales surprised to the upside, with the excluding autos figure jumping by 1.8% in November versus 0.2% from the previous month. The headline reading for retail sales rose by 1.2% from 0.2%. Meanwhile, inflation data released earlier validated the FOMC’s decision to ease by 25-basis points earlier in the week, instead of succumbing to overwhelming market demands for a 50-bp ease. November PPI posted its largest monthly gain since 1973 at 3.2%, while core prices rose by 0.4%. The inflation report will likely prevent the FOMC from easing aggressively and will shift the focus to tomorrow’s CPI inflation report.
Also worth noting, former Fed Chairman Greenspan raised his chances for a US economic recession to 50%, up from 30%. Traders will continue to closely monitor US reports for any signs of further deterioration and evidence of spillover from the housing market woes and financial market turbulence on the economy as a whole, particularly consumer confidence and consumption.
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