The DXY index bounced just before the start of NY session and retained
gains after Jul consumer confidence beat consensus with a print of 90.9, well
above 86.4 seen in the month prior. Equity indices did not fare as well. DJI
started positive but gave back all gains after US President Obama joined the
European Union to impose greater sanctions on Russia. Market jitters drove
bids towards the US treasuries. 10-year yields were choppy throughout
overnight session and traded lower at around 2.46% in early Asia.
It is no coincidence that the greenback firmed ahead of FOMC
decision today, even though there would be no press conference after the
decision. The stronger consumer confidence has investors pricing in any
hawkish tweaks to the statement. Key data on the tap includes the advanced
estimate of 2Q GDP as well as ADP employment survey.
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