UK Producer Prices fall in October. Pound, Euro decline vs. Dollar in Forex Trading. | CountingPips Forex Blog

November 10, 2008 - Forex Economic News

UK Producer Prices fall in October. Pound, Euro decline vs. Dollar in Forex Trading.

U.K. Producer Prices declined more than expected in the month of October as lower oil prices helped cool off U.K. factory inflation according to a release by National Statistics today. Producer prices fell by 1.0 percent in October, marking the largest one month drop in 22 years. The fall in producer prices surpassed market forecasts which were expecting a drop of 0.5 percent for October following September's revised 0.2 percent decrease. On an annual UK Producer Prices fall basis, producer prices registered a 6.8 percent increase over last October following September's 8.5 percent annual increase and below market forecasts expecting a 7.4 percent annual increase.

Falling manufacturing materials and petroleum prices contributed the most to the lower producer prices as materials and petroleum dropped by 5.6 percent in October. Core producer prices, excluding petroleum, food and tabacco, registered a 0.5 percent decline for October following a revised 0.5 percent decline in September and surpassed market forecasts of a 0.2 percent fall.

Euro, Pound decline vs. Dollar in Forex Trading.

The U.S. dollar has gained against both the European euro and the Great British pound sterling in forex market today. The euro, trading at approximately 1.2760 dollars per euro in the afternoon of the U.S. session, has fallen from today's opening rate of 1.2883. The pound meanwhile is also trading lower today against the U.S. dollar as the British currency has fallen below 1.5600 dollars per pound today after losing ground against the dollar last week. The GBP/USD trades at 1.5589 today and down from its opening exchange rate of 1.5854 dollars per pound.

GBP/USD Chart - The British pound falls against the US dollar today in forex trading(Daily Chart).

Today's Forex Chart

tags: uk producer prices, inflation, forex trading, eur, gbp, usd

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