U.K. jobless rate rises to 4.8 pct in Q3 2020, labor market likely to deteriorate further in months ahead
U.K.’s flash PMI indices indicate decline in business activity in November, composite index falls to 47.4
U.S. producer price inflation remains flat in October, likely to rebound from current sluggish pace
The U.S. producer price index inflation stayed flat in October as rise in goods was countered by a fall in services prices. The PPI print came in below expectations. On a year-on-year basis, PPI inflation rose 1.2 percent in October, the same as in September, below the consensus expectations of a rise of 1.5 percent.
Input prices continued to stay weak, but the prospects of bolstering demand indicate towards upward inflation pressures, noted Wells Fargo in a research report. Goods prices increased 0.4 percent in the month, largely owing to increased energy prices. On the other hand prices of food dropped 0.8 percent.
Services prices also fell in the month, dropping 0.3 percent, after rising modestly in September and August. Trade services dropped for the fourth consecutive month, led by a drop of 5.7 percent in costs for securities brokerage and investment advice.
Producer price index, excluding food, energy and trade services, fell 0.1 percent month-on-month; however, it its currently at its highest year-on-year pace since September 2014. The unexpected outcome of the U.S. election has significantly changed the U.S. economic outlook, with prospects for stronger growth and more rapid inflation in the medium-term. U.S. PPI inflation is expected to rebound from its current sluggish pace, added Wells Fargo.
At 09.00 GMT, the Hourly USD Strength Index stood neutral at 1.18933. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex