The US dollar was seen trading flat by Friday’s close despite the initial losses after data showed that consumer prices rose less than expected. Data from the Labor department showed on Friday that headline consumer prices rose 0.5% on the month in September, accelerating from 0.4% previously. But the data was below forecasts of 0.6%. Core consumer prices also rose 0.2% maintaining the same pace of gains as the previous month. Retail sales, on the other hand, rose 1.6% in September slightly below the forecasts of 1.7%.
The euro was seen trading weaker after comments from Draghi showed that substantial degree of monetary policy was still needed. His comments come ahead of next Thursday’s ECB meeting where the central bank is expected to announce another round of tapering.
Earlier today, China’s CPI data was seen rising 1.6% on the month as expected while producer prices rose 6.9%, beating expectations of a 6.3% increase. Later in the day, the US Empire state manufacturing index is to be released followed by the quarterly inflation data from New Zealand.
