*CPI data due on Thursday, Dec. 12 at 1200 GMT. BANGALORE, Dec 11- Indian inflation is forecast to remain close to 9- month highs in November, a Reuters poll showed, putting further pressure on the central bank to follow up on its back-to-back interest rate hikes despite slowing economic growth.» Read More
Both the euro and the pound retreated against the U.S. dollar as the Bank of England cut interest rates and the European Central Bank appeared to leave the door open for an eventual reduction.
The U.S. economy showed further signs of slowing, particularly with Thursday's report that the jobless ranks continued to swell last week
Jobless claims fell by 22,000 last week, but the number of workers remaining on jobless aid rose to its highest in more than two years.
The Bank of England is widely expected to cut interest rates by 25 basis points Thursday, for the second time in three months, in a delicate balancing act between offsetting the impacts of a slowing economy and fending off inflation.
The Fed must remain vigilant against rising inflation pressure this year even as the U.S. economy slows sharply, Philadelphia Fed President Charles Plosser said.
Richmond Federal Reserve Bank President Jeffrey Lacker Wednesday said policy-makers are worried about the possibility of recession, but that persistent inflation remains a worry for the central bank.
U.S. productivity in the fourth quarter rose at a stronger-than-expected pace as the biggest cutback in working hours in nearly five years helped restrain growth in labor costs, a U.S. Labor Department report showed on Wednesday.
The dollar edged lower against the yen and the euro Wednesday with investors reluctant to place big bets on currencies ahead of a key interest rate decision from the European Central Bank on Thursday.
The European Central Bank is likely to keep its title as the last inflation hawk standing at its rate-setting meeting Thursday, but as fears of a global economic slowdown grow, calls for easing will only increase.
The most likely path for the US economy is sluggish growth for at least half a year before a gradual recovery begins, Richmond Federal Reserve Bank President Jeffrey Lacker said.
The euro tumbled broadly Tuesday after dismal euro zone service sector data fedexpectations the European Central Bank also might have to cut interest rates to shore up growth.
If the health of the economy is so murky, why has the Federal Reserve been so aggressive in cutting interest rates?
Euro zone service sector growth slowed sharply in January from an already weak estimate and retail sales fell in the key Christmas period, according to data on Tuesday that stoked fears of a recession.
Australia's central bank on Tuesday raised interest rates to a decade peak of 7 percent, as it struggled to keep inflation under control, and left the door open for even more hikes if the red-hot economy did not cool soon.
Australian consumers went on a shopping spree last quarter, data showed on Tuesday, giving a boost to an already red-hot economy and reinforcing the case for an imminent rise in interest rates.
The dollar slipped against the euro and edged up against the yen Monday as investors waited to see how major central banks at policy meetings this week will respond to a potential global economic slowdown.
New orders at U.S. factories rose a less-than-expected 2.3 percent in December, the steepestgain since July, on strong aircraft sales, a government report showed.
The labor market may be weak, but that doesn't necessarily mean the US economy is in recession or on the verge of one.
Australia's inflation headache worsened in January while house prices boasted double-digit gains in 2007, figures out on Monday showed, adding to expectations for a restraining rise in interest rates this week.
The dollar rose against the euro and sterling Friday after a report showed a gauge of U.S. manufacturing in January was higher than expected, helping the U.S. currency recover after soft labor market data earlier in the session.