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US Dollar Recedes Amid CPI Data

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US Dollar Recedes Amid CPI Data

The US dollar traded sideways on Thursday, consolidating to the downside amid several batches of CPI data from both sides of the Atlantic.

The dollar index dropped more than 0.1 percent to 80.92 after mostly in-line inflation data made its way through the rounds on Thursday. Consumer inflation in the United States hit a six-month high in December, according to official data from the Commerce Department. The Consumer Price Index rose 0.3 percent last month and at an annual rate of 1.5 percent, matching economists’ forecasts.

Elsewhere, the European Commission confirmed inflation weakened to 0.8 percent annually in the euro area. Consumer prices rose at an annual rate of 1.4 percent in Germany, as food and non-alcoholic beverages rose faster than average.

The euro advanced marginally against the greenback amid signs the European Central Bank will maintain an accommodative policy stance for as long as necessary. The ECB’s monthly bulletin reiterated the Governing Council’s commitment to loose monetary policy. The EURUSD pair edged up 14 pips to 1.3618.

Less than stellar US inflation data allowed the Japanese yen to end its recent slide. The USDJPY pair fell nearly 0.3 percent to 104.30. Japan’s Cabinet Office is set to close out the week with data on foreign bond investment and consumer confidence.

Down-under, the Australian dollar fell nearly 1 percent after the statistics bureau reported steep job losses in December. The Australian economy shed 31,600 full-time jobs last month. Factoring in part-time employment, the Australian economy lost a total of 22,600 jobs in December. The AUDUSD pair settled at 0.8821. The pair has lost nearly two percent over a four-day skid.

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