Dollar continues to retreat overnight while US stocks also pulled back mildly. The dollar index, nonetheless, is still trading firm at around 99 comparing to last week's high of 99.34. DJIA dropped mildly by -179.85 pts, or -1.00% while S&P 500 dropped -20.62 pts or -0.98%. Asian equities follow and are generally lower in initial trading. In the currency markets, major pairs and crosses are generally trading in tight range as markets turned into a consolidation mode. Some weakness is seen in yen and swiss franc.
Boston Fed president Eric Rosengren said that "all future committee meetings, including December could be appropriate time for raising rates as long as the economy progresses as projected." And he emphasized that "data received recently have been positive, reflecting real improvement for the economy." Meanwhile he's confident that as long as the economy is "growing somewhat above potential" inflation will return to 2% target and economy will be back to full employment.
Released from Asian, China CPI slowed more than expected to 1.3% yoy in October while PPI was unchanged at -5.9% yoy. Australia business confidence dropped to 2 in October while home loans rose 2.0% in September. Japan current account surplus narrowed to JPY 0.78T in September. UK BRC sales monitor dropped -0.2% yoy in October.
Looking ahead, the economic calendar is rather light today. Swiss unemployment rate is expected to be unchanged at 3.4% in October. US import price index is expected to drop -0.3% mom in October while wholesale inventories is expected to rise 0.1% in September.