Investors will look to the minutes of the Fed’s July meeting for further signs that another rate hike is likely in September. Fed funds futures traders are currently projecting a 60% chance of a 50 basis point rise and a 40% chance of a 75 basis point rise.
Wednesday’s US retail sales data will also offer new clues about the consumer situation. The market expects sales to rise 0.1% in July from June.
Home construction in the United States fell in July to its lowest level in almost a year and a half, weighed down by the increase in mortgage rates and the prices of construction materialssuggesting that the housing market could contract further in the third quarter.
In afternoon trading, the dollar index was up a marginal 0.02% at 106.48. The euro rose 0.10% against the greenback to $1.0169, after hitting a low since August 3 of $1.0121.
Europe is facing an energy crisis after imposing sanctions on Russia for its invasion of Ukraine. Russia’s state gas company Gazprom said on Tuesday gas prices in Europe could rise 60% – to more than $4,000 per 1,000 cubic meters – this winter as the company’s own output and export continue to fall. amid Western sanctions.
The greenback gained 0.69% against the yen, trading at 134.22 per dollar.
Source: Ambito
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