As on Monday hasn’t publications of the important fundamental data, the major currency pairs consolidated in narrow ranges.
The dollar fell
from a seven-month high against the yen and declined versus currencies
in New Zealand and Australia on speculation its recent rally is too
fast to sustain.
The U.S. currency retreated from its
strongest level in almost six months against the euro before housing
and inflation reports that may add to speculation that the Federal
Reserve will delay raising interest rates. The greenback has gained 8.4
percent versus the euro since touching the record low in July on
evidence economies outside the U.S. are slowing.
The dollar will trade in a range of $1.45 to $1.50 in the next two weeks, Kassel said.
Futures
on the Chicago Board of Trade show a 21 percent chance the U.S. central
bank will increase the 2 percent target rate for overnight lending
between banks by at least a quarter- percentage point by its Dec. 16
meeting, down from 47 percent odds a week earlier. Policy makers next
meet Sept. 16.
U.S. housing starts dropped to an annual
rate of 960,000 in July, the fewest in 17 years, according to the
median forecast of 75 economists before the Commerce Department's
report today.
The Labor Department will report tomorrow
that the producer price index probably climbed 0.6 percent in July
after increasing 1.8 percent the prior month, according to the median
forecast of 75 economists.
EUR/USD printed highs around $1.4767, then to break above $1.4700 to session lows jn around $1.4670.