The Greenback declined across the board yesterday as investors re-assessed whether the Federal Reserve will raise interest rates this year or next. The Dollar will remain volatile this week as markets anxiously await Federal Reserve Chair Janet Yellen’s comments this Friday at the Jackson Hole symposium. The Dollar capped its biggest two-day gain in a month on Monday as fed fund futures showed traders increased bets for an increase this year to above 50 percent.
Eurozone data dominated yesterday’s economic docket. Firstly, Germany; the Eurozone powerhouse released their manufacturing and services PMI. Both pieces of high tier data failed to meet economists’ consensus. Services PMI in Germany registered a poor 53.3, its second lowest reading in just over a year. Shortly after, the Eurozone as a whole released their manufacturing and services PMI figures, both were in line with market expectations.
The only top tier data released today is from the States as the Oil inventories figure is released. Oil inventories looks at the amount of barrels stored by US companies and therefore gives the markets an insight into the demand and production of manufacturers. We also gain further insight into the US housing market with the release of existing home sales. Markets are expecting July’s figure to be in line with June’s 5.57m.