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The U.S. dollar traded mixed against the most major currencies after the better-than-expected U.S. consumer price inflation. The U.S. consumer price inflation rose 0.1% in September, exceeding expectations for a flat reading, after a 0.2% decrease in August.
On a yearly basis, the U.S. consumer price index increased 1.7% in September, in line with expectations, after a 1.7% gain in August.
The U.S. consumer price inflation excluding food and energy climbed 0.1% in September, missing expectations for a 0.2% rise, after a flat reading in August.
On a yearly basis, the U.S. consumer price index excluding food and energy rose 1.7% in September, in line with expectations, after a 1.7% increase in August.
The euro traded lower against the U.S. dollar. News that the European Central Bank is considering to buy corporate bonds still weighed on the euro.
Reuters reported yesterday that the European Central Bank (ECB) considering to start buying corporate bonds. The ECB could discuss the possibility of corporate bond buying program at its December meeting.
News by Spanish newswire Efe also weighed on the euro. Efe reported today that at least 11 banks had failed ECB stress tests. The ECB is expected to announce the results of stress tests on Sunday.
The British pound traded higher against the U.S. dollar. In the morning trading session, the pound dropped against the greenback after the Bank of England's minutes of the monetary policy committee meeting. The Bank of England (BoE) released its minutes of the monetary policy committee meeting today. Two members, Ian McCafferty and Martin Weale, voted for the third consecutive month to raise interest rates to 0.75% from 0.5%.
Seven of the nine MPC members voted to keep interest rate at 0.5%.
The tone of the BoE's minutes was bearish. The BoE said that there was a slight loss of momentum in September, and it expects that GDP growth in the fourth quarter would slow to 0.8%.
The central bank pointed out that interest rate hike "might leave the economy vulnerable to shocks".
The Canadian dollar traded higher against the U.S. dollar after Canadian retail sales and the Bank of Canada's interest rate decision. Canadian retail sales dropped by 0.3% in August, missing expectations for a 0.2% increase, after a 0.1% decline in July. That was the largest drop this year.
Canadian retail sales excluding automobiles fell 0.3% in August, missing forecasts of a 0.3% gain, after 0.5% drop in July. July's figure was revised up from a 0.6% decrease.
The Bank of Canada (BoC) kept its interest rate unchanged at 1.00%. The BoC said in its statement that "the current stance of monetary policy is appropriate".
The New Zealand dollar traded lower against the U.S. dollar in the absence of any major economic reports from New Zealand.
The Australian dollar traded higher against the U.S. dollar. Australia's consumer price index climbed 0.5% in the third quarter, beating forecasts of a 0.4% rise, after a 0.5% increase in the second quarter.
On a yearly basis, Australia's consumer price inflation increased 2.3% in the third quarter, in line with expectations, after a 3.0% gain in the second quarter.
The Japanese yen fell against the U.S. dollar. Japan's adjusted trade deficit widened to ¥1,070.14 billion in September from a deficit of ¥912.40 billion in August. August's figure was revised up from a deficit of ¥924.40 billion. Analysts had expected a deficit of ¥910.0 billion.
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