The U.S. Dollar was seen attempting to regain some of the losses from the day before. The Dollar managed to post gains as data showed that consumer price index rose 0.3% on the month in October.
This was the biggest monthly gain since January this year, and it pushed the annual CPI to 2.5%. Core inflation which excludes the volatile food and energy prices rose 2.1% on the year in September.
Elsewhere, data from the UK showed that consumer prices remained stable. Headline CPI rose 2.4% on the year ending October. This was the same pace of increase as the month before and was slightly below the estimate of a 2.5% increase. However, the GBP was focused on the Brexit developments. News reports revealed that the UK and the EU agreed on a draft Brexit agreement. However, it is left to be seen if the deal is acceptable by the House of Commons.
Data from the Eurozone was disappointing as Germany’s economic growth contracted. On a quarterly basis, German GDP fell 0.2% pushing the annual GDP growth rate to 1.1%. Meanwhile, Eurozone’s quarterly GDP was also weaker, rising 0.2%. This was the same pace of increase as in the second quarter of the year.
Data from Australia showed that the monthly employment change increased 32.8k. This beat estimates of 19.9k along with revisions to the previous month’s data. The unemployment rate held steady at 5.0% against the forecast pointing to an increase to 5.1%.
The European trading session today will see the release of the retail sales report for the month. Economists forecast that the monthly retail sales rose 0.1% after falling 0.8% previously. The trade balance figures from the Eurozone will be coming up later.
The NY trading session is marked by the release of the U.S. retail sales report. Retail sales are forecast to rise 0.6% while core retail sales are expected to increase 0.5% on the month.
The Philly Fed manufacturing and the Empire State manufacturing index reports will be coming out later.
