The dollar regained lost ground following disappointing US economic data released yesterday and stayed mostly higher against its peers today on thin volume traded while US markets are closed for the Thanksgiving holiday. The US dollar index gained 0.23% up to a reading of 87.90.

The euro weakened against the dollar on the back of data which revealed that Germany’s consumer price index increased by only 0.6% in November after an increase of 0.8% in October. The figures added fuel to the possibility that the European Central Bank will introduce new stimulus programs in order to trigger growth and increase inflation within the euro zone. The number of those unemployed in Germany dropped by 14,000 in November while only a decrease of 1,000 was forecast, as the unemployment rate remained at 6.6% while a tick up to 6.7% was predicted.

The pound weakened against the dollar with the pair coming off a 2 week high set earlier today as the dollar trimmed losses stemming from yesterday’s series of unfavorable US data. The pound had reached the 2 week high as it was still being supported by data released yesterday showing that the UK economy expanded by 0.7% in the 3rd quarter. The pound was stronger against the euro.

The yen strengthened against the dollar to a 1 week high as the discouraging data out of the US put pressure on the dollar fueling predictions that the Fed will keep rates unchanged until the later half of next year. The pair was down over 0.3% but then retraced trading near the high of the day with thin volume expected.

The Australian, New Zealand and Canadian dollars held their ground against the dollar. Before the dollar had made its comeback the Aussie dollar had been supported by solid figures on Australian capital expenditure. Data released out of Canada revealed that its current account deficit decreased from C$9.9 billion in the 2nd quarter to C$8.4 billion in the 3rd quarter. Experts had predicted the deficit to reach C$10.3 billion for the 3rd quarter.

Disclaimer: This information has been prepared to provide you with general information only. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information.