USD
The Dollar had a mixed day yesterday after the higher than forecast consumer
pricing index was counteracted by disappointing unemployment
claims. Figures revealed Fewer Americans filed for unemployment benefits
last week as the need to retain staff keeps firings at the lowest levels in
more than a decade, giving the Dollar a boost. The unemployment claims figure
was better than last month’s figure but below the forecast. 

USD
The Dollar had a mixed day yesterday after the higher than forecast consumer
pricing index was counteracted by disappointing unemployment
claims. Figures revealed Fewer Americans filed for unemployment benefits
last week as the need to retain staff keeps firings at the lowest levels in
more than a decade, giving the Dollar a boost. The unemployment claims figure
was better than last month’s figure but below the forecast. 

Companies are holding on to more workers to keep pace with demand for domestic
goods and services that has held up even as growth in overseas markets cools.
As a result, firings have lingered near historically low levels and payrolls
are rising, giving U.S. households a needed lift as the holidays approach.

Prices in the U.S. excluding fuel and food increased more than forecast in
October as a drop in energy costs failed to filter through to other goods and
services. Rising costs for rents, airline fares, hotel rooms and furniture show
the slowing in overseas growth that is helping restrain fuel prices.

GBP
British retail sales jumped in October, suggesting that shoppers will take the
edge off an end-of-year economic slowdown as Europe’s weak growth takes its
toll on Britain’s factories. Sales volumes rose by a much
stronger-than-expected 0.8 percent on the month, helped by purchases of
furniture after the housing market surged earlier this year and by falling
prices. Consumer spending has driven Britain’s strong economic recovery
which began in mid-2013 and is likely to remain its main driver as the global
economic outlook worsens.

A survey showed British manufacturers expect output in the next three months to
be its lowest in over a year, hurt by the sluggish euro zone and a slowdown in
China. A separate report showed British car production fell by nearly 7
percent in October due to weak exports.

Bank of England policy-makers have questioned how long private demand can
continue to offset weak exports and the effects of public sector spending cuts,
according to minutes of their November meeting which were published on
Wednesday.

EUR
Hope of a Eurozone end-of-year recovery have been dashed by a flurry of poor
data released yesterday. The composite purchasing managers’ index – a survey of
private sector firms across services and manufacturing fell to 51.4 in November
from October’s 52.1. Any figure above 50 signifies growth, but this sluggish
growth is becoming slower.

Key
Announcements:

08:00 – EUR – ECB President Mario Draghi makes a speech

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