The dollar index (DXY00) is now down -0.08%. The dollar is under pressure today from lower T yields. In addition, signs of progress in peace discussions on Ukraine stimulate EUR / USD at the expense of the dollar. Dollar losses are limited due to the concern that the IPC and IPP reports in July last week that last week could prevent the Fed from reducing interest rates at the FOMC meeting next month.
Today’s news from the US housing has been mixed for the dollar. Us Jul Housing begins to unexpectedly increase by + 5.2% m / m to a 5 -month summit of 1.428 million, stronger than the expectations of a drop to 1.297 million. However, Jul’s building allows, an indirect indicator of future construction, dropped from -2.8% m / m to a lower 1.354 million, lower than expectations of -0.5% m / m to 1.386 million.
The dollar has collected a certain support today after the global S&P ratings have affirmed its long-term note AA + and its short-term note AA and said that the United States can maintain its credit force despite the budgetary blow of its recent expenditure bill because pricing income “will generally compensate for lower tax results”.
The markets await the current meeting between President Trump and European leaders on any progress towards the end of the Russian-Ukrainian war. The result could have macroeconomic implications for prices and oil prices, and could of course have significant consequences for European security.
The markets continue to adapt to inflation prospects after the Hawkish PPI report on Thursday. Following the report, the markets have erased the hopes with a rate drop of -50 bp at the September meeting of the Fed and withdrew the expectations for a rate drop of -25 bp to 84% from 93% before the report.
Federal fund prices reduce the chances of a drop in the rate of -25 bp to 84% at the meeting from September 16 to 17 and 53% for a second drop in rate of TA at the next meeting from October 28 to 29.
EUR / USD (^ eurusd) today is up + 0.05%. The euro increases a little more today on signs of progress in discussions on peace against Ukraine. US and European officials said they would work immediately to provide Ukraine to robust security guarantees to open a way for a meeting between Presidents Putin and Zelenskiy.
