Profit statements

Dollar Falls Wide as Online US Inflation Data Triggers Profit Taking: December 13, 2021

The greenback erased its initial gains and ended the day lower relative to the majority of its peers due to profit taking on Friday as the online US inflation release heightened speculation that the pace of Fed rate hikes will not change.

Reuters reported that consumer prices in the United States rose further in November, with the cost of goods and services rising widely amid supply constraints, resulting in the largest annual increase since 1982, which could prompt the Federal Reserve to quickly reduce its bond purchases. The consumer price index rose 0.8% last month after jumping 0.9% in October, the Labor Department said on Friday. In the 12 months ending in November, the CPI accelerated 6.8%. This was the largest year-over-year increase since June 1982 and followed a 6.2% gain in October. Their economists polled had forecast a 0.7% rise in the CPI.

Against the Japanese yen, the dollar found new buys at 113.34 in the Asian morning and hit session highs at 113.79 in Europe. The pair then erased its gains and fell in turbulent New York trading to an intra-day low of 113.23 after the release of US inflation data.

The single current met a further short at 1.1303 ahead of the European open and fell to a session low at 1.1266 in the European morning due to the widespread USD rebound. The price then erased its losses and hit an intra-day high at 1.1324 in New York City following the weakness of the USD.

The British pound climbed to 1.3233 in the Asian morning before falling to a session low of 1.3188 in Europe based on sinking UK GDP data as well as a widespread USD rebound. However, the Cable then rose in tandem with the Euro to an intraday high at 1.3276 in New York in tandem with the Euro.

In another Reuters statement, the UK economy grew 0.1% weaker than expected in October, leaving it still 0.5% lower than it was in February 2020, just before the country did enters its first COVID-19 lockdown, the Office for National Statistics said on Friday.
And their polled economists had forecast monthly gross domestic product growth of 0.4% from September.

Data to be released next week:

New Zealand Business NZ PSI, Japan Machine Orders, Large Tankan Manufacturing Index, Large Tankan Non-Manufacturing Index, Small Tankan Manufacturing Index, and Small Tankan Non-Manufacturing Index and Germany Wholesale Price Index on Monday.

New Zealand Food Price Index, Australia NAB Trading Conditions, NAB Business Confidence, Japan Industrial Production, Capacity Utilization, UK Claimants Count, ILO Unemployment Rate, Weekly Earnings average, Swiss producer / import price, EU industrial production, US PPI and red book Tuesday.

New Zealand Current Account, Australian Consumer Sentiment, Westpac Leading Index, China House Prices, Industrial Production, Retail Sales, Japan Service Industries, UK CPI, RPI, PPI Input Prices, Product Prices PPI, Housing Price Index DCLG, Markit Manufacturing PMI, CPI France, CPI Italy, Housing Starts in Canada, CPI, Manufacturing Sales, US Import Prices, Export Prices, Retail Sales, Business Inventories, Market Index NAHB real estate and the Fed’s interest rate decision Wednesday.

New Zealand Food Price Index, Australian Manufacturing Index, Services PMI, Employment Trends, Unemployment Trends, Japanese Exports, Imports, Trade Balance, Jibun Bank Manufacturing PMI, China Retail Sales, business climate in France, Markit manufacturing PMI, Markit services PMI, Swiss SNB interest rate decision, Germany Markit manufacturing PMI, Markit services PMI, EU Markit manufacturing PMI, Markit services PMI, trade balance, labor cost labor, ECB refinancing rate, ECB deposit rate, Italy trade balance, World trade balance, UK Markit manufacturing PMI, Markit services PMI, BOE interest rate decision, asset purchase program, QE total BOE, purchase of corporate bonds BOE QE, increase in BOE MOC vote, BOE MPC vote unchanged, reduction in BOE MPC vote, US building permits, housing starts, initial jobless claims, further Unemployment claims, Philadelphia Fed manufacturing index, industrial production, capacity utilization, manufacturing output, Markit manufacturing PMI, Markit services PMI, KC Fed manufacturing, Canada w Wholesale trade and ADP employment change on Thursday.

NBNZ New Zealand business outlook, NBNZ own activity, UK consumer confidence Gfk, retail sales, Japanese BoJ interest rate decision, German producer prices, wholesale price index, business climate Ifo, current Ifo conditions, Ifo expectations, business climate in France, Markit services in UK PMI, EU construction output, HICP, Canada wholesale trade and budget balance on Friday.