The U.S. Dollar was seen trading a bit volatile on Tuesday. Economic data on the day showed that consumer prices in Switzerland fell 0.3% on the month. This was worse than forecasts of a 0.1% decline. The data comes ahead of next week’s quarterly SNB meeting.
In the UK, the pound sterling jumped on initial reports from an EU court official who said that the UK did not require EU’s permission to cancel Brexit. However, the gains were quickly erased. Construction PMI data showed a modest increase to 53.4 in November, which came out better than the forecasts of a 52.5 increase.
Producer prices in the Eurozone soared 0.8% on the month in November beating forecasts of a 0.4% increase. Previous month’s PPI was also revised higher to show a 0.6% increase.
The NY trading session was relatively quiet. The USD eased amid new concerns that the growth was faltering. President Trump once again ramped up pressure on the U.S. China trade talks reminding about the 90-day truce period. Both nations are set to start negotiations in a few weeks.
Earlier today, Australia’s quarterly GDP report showed that the economy expanded 0.3% in the three months ending September. This was lower than the forecast of a 0.6% increase as growth slowed from the second quarter’s robust growth of 0.9%.
Looking ahead, the ECB President Mario Draghi is due to speak at an event. His speech comes ahead of next week’s ECB monetary policy meeting. The Eurozone’s services PMI numbers will be coming out later in the day. Final services PMI for the Eurozone is expected to remain unchanged.
In the UK, services activity is expected to rise modestly to 52.5 from 52.3 in October. Retail sales in the Eurozone is expected to tick higher to 0.2% increase on the month.
The NY trading session will see the Fed Chair giving his annual two-day testimony to Congress. Powell’s speech will come under scrutiny after his recent comments about Fed funds rate nearing the neutral level.
Later, the Bank of Canada is expected to hold its monetary policy meeting. No changes are expected to the BoC’s interest rate decision.
The U.S. ISM non-manufacturing PMI report is forecast to ease to 59.2 from 60.3 previously.
