December 12, 2017
Indicative Interbank spot sell rates only as of 9:00 AM PST.
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United States (US): The producer-price index for final demand advanced 3.1% in November from a year earlier, the biggest jump in nearly six years. Producer prices rose 0.4% in November for the third consecutive month. Energy prices, which grew 4.6% last month, boosted the overall month-over-month rise in producer prices. Even when excluding food and energy and a volatile category known as trade services, prices businesses charged were up 0.4% in November from a month earlier. The Federal Reserve's preferred inflation gauge rose 1.6% in October from a year earlier, according to the Commerce Department. That annual inflation reading has remained below the Fed's 2% target for the best part of 5 1/2 years.
Australia’s dollar traded at 75.48 U.S. cents at 9:13 AM PST and New Zealand dollar traded at 69.26 U.S. cents. In Australian, the ANZ-Roy Morgan Consumer Confidence slipped 0.6% this week to 115.1, effectively unwinding the 0.7% gain in the previous week, but remaining above its long run average. Australian house prices fell in half of Australia’s capital cities in the September quarter. The Bureau’s Residential Property Price Index fell by 0.2% during the quarter, led by a 1.4% drop in Sydney.
British Pound exchange rate is 1.3324 against USD at 9:13 am PST. UK's Consumer Prices Index inflation rate was 3.1% in November, above consensus estimates, and a little higher than the 3% seen for the three previous months. November's reading marks the highest rate of consumer price inflation since March 2012, when prices rose an average 3.5%. CPIH, a measure which includes costs associated with maintaining a home was 2.8% in the month, unchanged from October's reading. The house price index climbed 4.5% y/y in October, slower than the 4.8% rise in September, which was revised down from a 5.4% increase reported earlier. The average UK house price was GBP 224,000 in October, which was GBP 10,000 higher than in the same month of the prior year, while GBP 1,000 lower than a month ago. House price inflation in England alone was 4.7% in October. House prices grew 4.5% in Wales and a 2.8% rise seen in Scotland.
Japanese Yen traded at 113.64 per USD at 9:14 am PST. Japanese indicators pointed upwards and beat their estimates. PPI rebounded with a gain of 3.5%, above the estimate of 3.3%. Tertiary Industry Activity gained 0.3%, edging above the estimate of 0.2%. Later in the day, Japan releases Core Machinery Orders, which is expected to gain 2.8%.
This market update is prepared by Cathay Bank for informational purposes only and does not constitute any form of legal, tax or investment advice, nor should it be considered an assurance or guarantee of future exchange rate movements or trends. This information is provided without regard to the specific objectives, financial situations or needs of any recipient. Cathay Bank does not make any representations or warranties about the accuracy, completeness or adequacy of this market update.