Official data released on Tuesday showed that in October consumer price inflation in the U.S. increased in line with expectations.
EUR/USD was last seen at 1.0663 from around 1.0671 ahead of the release of the data, GBP/USD was unchanged at 1.5206, while USD/JPY was at 123.35 from 123.23 earlier.
The U.S. Commerce Department reported that in October consumer prices rose by a seasonally adjusted 0.2%, matching expectations and following a fall of 0.2% in September.
Year-over-year, consumer prices were 0.2% higher from the same month a year earlier, compared to expectations for a 0.1% increase and after holding flat in September.
Consumer prices, excluding food and energy costs, climbed by a seasonally adjusted 0.2%, meeting expectations. In September, core consumer prices added 0.2%.
Last month, core CPI increased at annualized rate of 1.9% - in line with estimates and unchanged from the preceding month.
The U.S. Federal Reserve views core prices as a better indicator of longer-term inflationary pressures, since they exclude the volatile food and energy categories. The regulator's target is usually 2% core inflation or less.
On the data front, investors now look ahead to industrial production and capacity utilization data for October due at 9:15 a.m. Eastern.
At 10 a.m. Eastern, the National Association of Home Builders is due to post its November housing market index.
Dallas Federal Reserve President Rob Kaplan will give his first major
speech since taking the Fed role, on economic conditions and Fed policy
at the University of Houston at noon Eastern.
At 1:15 p.m. Eastern, Fed
Gov. Jerome Powell will speak at the Clearing House annual conference
in New York.
Fed Gov. Daniel Tarullo will speak at a Brookings Institution conference at 3:30 p.m. Eastern.
