Investing.com - The U.S. dollar fell on Thursday after consumer prices rose less than expected in September, increasing the chances of the Federal Reserve cutting rates before the end of the year.
Used-car sales fell by the most in a year, as the core consumer price index rose by just 0.1% from the prior month, according to the Labor Department. The broader CPI was unchanged and p 1.7% on an annual basis.
Meanwhile jobless numbers released Thursday suggest that the labor market remains strong, which could complicate a decision from the Fed. The number of Americans filing for unemployment fell and the unemployment rate remains near a 50-year low of 3.5%.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was down 0.4% to 98.73 as of 12:00 PM ET (16:00 GMT).
The Japanese yen, which is seen as a safe-haven in times of market turmoil, fell, with USD/JPY rising 0.4% to 107.92.
Elsewhere, sterling jumped after the Prime Ministers of the U.K. and Ireland released a joint statement saying they saw a potential pathway to a Brexit deal. While there were few details in the press release, the news helped bolster hope that talks will continue and a no-deal Brexit avoided ahead of an EU summit next week.
GBP/USD soared 1.4% to 1.2371, while EUR/USD gained 0.5% to 1.1020.