UK Producer Prices fall in November. Dollar declines in Today's Forex Trading. | CountingPips Forex Blog

December 8, 2008 - Forex Economic News

UK Producer Prices fall in November. Dollar declines in Today's Forex Trading.

U.K. Producer Prices continued to decline in the month of November as lower oil prices helped cool off U.K. factory inflation according to a release by National Statistics today. Producer prices fell by 0.7 percent in November following a record drop of 1.0 percent in October and marking the fourth straight month of price declines. The fall in producer prices equaled market USD falls in Forex Trade, fx trading, economics forecasts which were expecting a drop of 0.7 percent for October. On an annual basis, producer prices registered a 5.1 percent increase over last November following October's 6.7 percent annual increase and below market forecasts expecting a 5.2 percent annual increase.

Falling manufacturing materials and petroleum prices contributed the most to the lower producer prices as materials and petroleum dropped by 3.3 percent in November. Core producer prices, excluding petroleum, food and tabacco, registered a 0.2 percent increase for November following a 0.5 percent decrease in October and surpassed market forecasts expecting a 0.4 percent decline. On an annual basis, core producer prices increased by 5.1 percent over November 2007 following an annual 5.0 percent increase in October.

US Dollar falling in FX Trading.

Today's forex market action saw renewed risk appetite with stocks rising and the U.S. dollar and Japanese yen losing ground to the other major currencies. The Dow Jones Industrial Average gained almost 300 points while Nasdaq rose by 62 points and the S&P 500 increased by over 33 points. European and Asian stock markets also saw gains today.

The euro, pound, loonie, aussie, kiwi and the Swiss franc all have gained verses the U.S. dollar today while the yen has been virtually unchanged verse the American currency. The EUR/USD pair has gained from today's opening rate of 1.2761 dollars per euro to trading at 1.2956 at the end of the U.S. trading session at 5:07 pm ET. The GBP/USD has advanced from opening at 1.4732 to trading today at 1.4905. The US dollar is virtually unchanged against the yen from today's 92.77 opening rate as the USD/JPY trades at 92.78.

The dollar fell against the Canadian loonie as the USD/CAD pair trades at 1.2501 from its opening at approximately 1.2699 while verses the Swiss franc the dollar has declined from 1.2192 to trading at 1.2043. The Australian dollar has advanced to trading at 0.6651 today against the US dollar from 0.6505 while the New Zealand kiwi dollar has reached 0.5473 dollars per kiwi after opening at 0.5328 today.

EUR/USD Chart - The Euro advancing vs. the US Dollar today and maybe on its way above 1.3000 in currency trading (Hourly Chart).

Today's Forex Chart

tags: uk producer prices, inflation, forex rates, forex market

Blog Index