These two five letter words could make or break dollar
The U.S. dollar traded lower against the euro and Japanese Yen ahead of Wednesday’s Federal Reserve’s monetary policy announcement. This sell-off was driven by a combination of lower yields and weaker economic data. New home sales which were expected to rebound in June declined for the second month in a row. With existing and new home sales falling, the overheated housing market could finally be cooling. Ten year Treasury yields also dropped 4.4% as the S&P 500 ended the day lower for the first time in 6 trading days.
It is widely believed that the July FOMC statement will remain virtually unchanged. From the threat of the highly contagious Delta virus variant, expiring eviction moratorium and extra unemployment benefits, there are just too many uncertainties for the Fed to press the pedal on taper. U.S. data has also been mixed. Considering that most policymakers believe that inflation is transitory,…
