The U.S. dollar was seen trading mixed as investors gear up for the Fed meeting today. On Tuesday, economic data from the U.S. showed that the U.S. producer price index advanced 3.1% on the year in November. This was the biggest gain since January 2012. The price increase at factory gate stoked expectations that the consumer price index could come out stronger.
The November CPI data will be released today with forecasts showing a 0.4% increase on the month. The Fed’s rate hike decision is also coming up. Expectation for a 25 basis points rate hike is almost certain. The Fed’s projections for the year ahead and forward guidance will be key.
In the UK, the inflation data for November released yesterday showed that CPI accelerated 3.1% on the month. However, core CPI was steady, rising 2.7%.
The UK’s monthly jobs data will be coming out today with forecasts showing a modest increase in wages to 2.5%.
