2017.12.1214:53:00UTC+00Dollar Rising Ahead Of FOMC Decision

The dollar is up against its major European rivals Tuesday afternoon, but has given back its early gains against the Japanese Yen. The Federal Reserve kicked off its 2-day policy meeting this morning and will announce its decision tomorrow afternoon. The central bank is widely expected to hike interest rates by a quarter point.

Producer prices in the U.S. increased by slightly more than expected in the month of November, according to a report released by the Labor Department on Tuesday.

The Labor Department said its producer price index for final demand climbed by 0.4 percent in November, matching the increases seen in the two previous months. Economists had expected prices to rise by 0.3 percent.

The dollar has climbed to around $1.1735 against the Euro Tuesday afternoon, from an early low of $1.1792.

Germany's economic sentiment weakened more-than-expected in December amid political uncertainty, a closely-watched survey revealed Tuesday.

The ZEW Indicator of Economic Sentiment fell 1.3 points to 17.4 in December, the Mannheim-based think tank ZEW said. The indicator remained below its long-term average of 23.7 and the expected level of 17.6.

French payroll employment growth slowed in the third quarter, the statistical office Insee showed Tuesday. Net payroll job creation reached 44,500 in the third quarter. Employment increased 0.2 percent after rising 0.4 percent in the previous quarter.

The buck has risen to a 2-week high of $1.3315 against the pound sterling this afternoon, from an early low of $1.3380.

UK inflation accelerated unexpectedly to its highest level in more than five years in November, on airfares and computer games, official data showed Tuesday.

Inflation rose slightly to 3.1 percent in November from 3 percent in October, the Office for National Statistics said. Price growth was last higher in March 2012. The inflation rate was expected to remain at 3 percent.

British house price inflation eased for the second straight month in October, figures from the Office for National Statistics showed Tuesday.

The house price index climbed 4.5 percent year-over-year in October, slower than the 4.8 percent rise in September, which was revised down from a 5.4 percent increase reported earlier.

The greenback reached a high of Y113.749 against the Japanese Yen Tuesday, but has since retreated to around Y113.540.

Producer prices in Japan were up 0.4 percent on month in November, the Bank of Japan said on Tuesday. That exceeded forecasts for a gain of 0.2 percent and was up from 0.3 percent in October.

Japan's tertiary activity index increased at a faster-than-expected pace in October, after falling in the previous two months, data published by the Ministry of Economy, Trade and Industry showed Tuesday.

The tertiary activity index climbed 0.3 percent month-over-month in October, reversing a 0.2 percent decrease in September. Economists had expected a 0.2 percent rise for the month.