The US dollar stumbled somewhat yesterday, as optimism over interest rate rises was dampened further. For the second consecutive day the housing market stateside showed disappointing results, as the price of houses rose less than was forecast in July. As another sign that the economic recovery is not as “firm footed” as it had seemed, bets that the Federal Reserve would act sooner rather than later to increase interest rates were reduced. From a wider view, the news that the US had started airstrikes in Syria drove some investors away from the dollar to the safer haven of the Japanese yen.
Today sees the first key US data release for this week in the shape of new home sales. However, there is little else aside from this, although another member of the US Federal Reserve will be speaking later in the evening. As such, investors will be looking for any encouragement as to interest rate rises, while also keeping an eye on the geopolitical situation in Syria.