The dollar is still weaker against most major currencies this morning. It is thought that this current weakness is due to profit-taking on long dollar positions as markets start to factor in the Federal Reserve’s upcoming tapering.
Producer prices in the US increased yet again in September, reaching the highest level since before 2010 but missing market expectations.
Initial jobless claims figures were also released yesterday. The number of Americans filing for unemployment benefits fell below 300,000 for the first time since the start of the pandemic. The reading of 293,000 suggests that employers are retaining employees amid labour shortages and the continued supply chain issues.
Other data releases due today are September retail sales, Empire manufacturing index and the University of Michigan survey for October. We will also hear from two Fed members.
