The US dollar was seen trading weaker yesterday. This came despite the US producer price index rising 0.4% on the headline and 0.4% on the core, beating the forecasts. Earlier in the day, the European session saw the release of the final German GDP figures. Surprisingly, data showed that German GDP advanced 0.8% on the quarter ending September. The euro posted strong gains rising back above the 1.1700 handle by yesterday’s close.
The UK’s inflation report released yesterday showed that consumer prices stabilizing, rising at a pace of 3.0%. This was the same pace of increase as seen in the month before and was slightly below forecasts.
Looking ahead, economic data from the UK continues with the release of the monthly jobs report. The UK’s unemployment rate is expected to remain steady at 4.3% while wage growth is expected to weaken somewhat. In the US trading session, the monthly inflation figures will be coming out that could be the major highlight of the day. This is followed by the retail sales numbers.