DOLLAR SLIGHTLY HIGHER VS PEERS AS U.S. INDUSTRIAL PRODUCTION MATCHES FORECASTS

On Friday the greenback was higher against the other major currencies after fresh economic reports.

Industrial production in the U.S. fell 0.2% in September and capacity utilization declined, according to data released by the Federal Reserve on Friday. The data came in line with expectations.

August's decline was revised higher to a drop of 0.1% from the prior estimate of a 0.4% fall. The only major market group to log a gain in September was consumer goods. Capacity utilization fell to 77.5% from an upwardly revised 77.8% in August, a bit above the 77.4% expected. The strong dollar, sluggish growth overseas, and low crude oil prices are all serving as headwinds for the U.S. factory sector.

The dollar was higher after the data, supported by the previous session's economic reports.

The U.S. Department of Labor said Thursday that the number of individuals filing for initial jobless benefits in the week ending October 10 decreased by 7,000 to 255,000 from the previous week’s total of 262,000. Economists had awaited jobless claims to rise by 8,000 to 270,000.

In a separate report, the U.S. Commerce Department said that consumer prices dipped 0.2% last month, matching expectations. Year-over-year, consumer prices were flat in September. Core consumer prices, which exclude food and energy costs, climbed by 0.2%, above expectations for a gain of 0.1%.

USD/JPY was last up 0.13% to 119.05.

Earlier in the day, Bank of Japan Governor Haruhiko Kuroda that the overall inflation trend is improving and that consumer spending is recovering from a lull earlier this year, dampening expectations that the central bank will increase stimulus measures.

Meanwhile, EUR/USD slipped 0.06% to 1.1380, while GBP/USD was up 0.07% to 1.5463.

In a final report, Eurostat said the euro area's consumer price gauge climbed 0.2%, matching forecasts expectations and higher from an initial estimate of 0.0%.

Credit: mql5.com

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DOLLAR JUMPS AFTER UPBEAT U.S. DATA

U.S. consumer prices logged their biggest drop in eight months in September as the cost of gasoline fell, however, a steady ascent in the prices of other goods and services signaled inflation was starting to firm. The U.S. labor market also showed some good numbers.

Official data released Thursday showed that new applications for unemployment aid fell back to a 42-year low last week. The low level of layoffs and steadying underlying inflation could keep the door open to an interest rate hike from the Federal Reserve this year.

The Labor Department said its Consumer Price Index fell 0.2 percent last month after slipping 0.1 percent in August. In the 12 months through September, the CPI was unchanged for the first time in four months after rising 0.2 percent in August.

The so-called core CPI, which strips out food and energy costs, rose 0.2 percent after ticking up 0.1 percent in August. In the 12 months through September, the core CPI rose 1.9 percent, the largest gain since July 2014, after rising 1.8 percent in August.

The U.S. central bank monitors the personal consumption expenditures price gauge, excluding food and energy, which is running well below the core CPI.

Low inflation, which has persistently run below the Federal Reserve's 2 percent target, has been a major obstacle in the Fed's way to raising rates this year.

The greenback turned broadly higher against the other major currencies after the news was released, easing off a two-and-a-half month trough.

EUR/USD dipped 0.81% to 1.1381, pulling away from a 1-1/2 month peak of 1.1495 hit overnight.

The dollar moved higher against the pound and the Swiss franc, with GBP/USD down 0.23% at 1.5442 and with USD/CHF gaining 0.43% to 0.9536.

It was lower against the yen, however, with USD/JPY last seen at 118.60, down 0.20%.

Credit: mql5.com

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