The dollar maintained its strong position against the euro and pound yesterday, in a start to the week devoid of high-level data for the markets to feed on. This morning it has declined a little, despite reports that the Fed has an outside chance of raising interest rates by 100 basis points tomorrow, which would be its highest for 40 years.
It’s all about housing in the early part of the week, with the NAHB housing market index falling for the ninth straight month yesterday, to 46, and the lowest level since May 2020.
Later today there will be housing starts and building permits for August and tomorrow is existing home sales. With mortgage rates rising along with interest rates and prices at record highs, almost all housing metrics are forecast to decline.
The week’s big event, indeed the month’s big event, is tomorrow with the Federal Reserve’s interest rate decision.
USD/EUR past year
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