The dollar was mixed against other majors Wednesday morning in New York, falling through support to hit a multi-month low versus the sterling ahead of another round of key economic data. On the flip side, the dollar firmed up against the yen, paring some of yesterday's steep losses.
The consumer price index for March is scheduled to be released at 8:30 AM ET on Wednesday. The index is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. The consensus estimates call for 0.2% growth in the consumer price index and a 0.1% rise in the core consumer price index that excludes food and energy.
The results of the New York Federal Reserve's empire state manufacturing survey, which elicits response from 200 manufacturing executives in New York state, is slated to be released at 8:30 AM ET on the same day. The headline general business conditions index for April is expected to come in at -35.
In currency moves, the dollar dropped to 1.5036 versus the sterling, hitting its lowest point since January before stabilizing around mid-morning. The sterling, which was pummeled over the past year amid concerns about the viability of the British banking system, has rebounded of late amid signs that the UK economy may be turning around.
House prices in the United Kingdom dropped 12.3% year-on-year in February, after falling 11.5% in January, a report by the Department of Communities and Local Government or the DCLG said Wednesday.
The dollar was little changed in very choppy dealing versus the euro Wednesday morning, holding near 1.3200. The pair has been unable to sustain any direction over the past few weeks, with traders confused about the European Central Bank's approach to heading off the recession.
Many expect the ECB to slash interest rates near zero in the coming months, while others speculate inflation hawks among euro area policymakers will have their way by waiting to see how stimulus packages and easing measures abroad impact the global ecomony.
The dollar gained on the yen Wednesday morning, rising back toward the century mark after seeing steep losses in the previous session. The dollar rebounded to 99.40 by mid-morning, up from yesterday's low near 98.
Last week, the dollar hit a multi-month high of 101.43 before leveling off.
Japanese industrial production declined for the fifth consecutive month in February, a revised report from the Ministry of Economy, Trade and Industry or METI showed Wednesday. In February, production fell 9.4% month-on-month, in line with initial estimate. Output recorded an annual fall of 38.4%.
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