Investors assess Confidence and Housing data ahead of FOMC decision

The US reported solid Housing and Consumer Confidence data from July. The Conference Board reported that individuals' confidence in economic activity jumped to 117, above the expected 112 and the previous 109.7. On the other hand, the S&P/Case-Shiller Home Price Index dropped but was lower than expected in May, coming falling by 1.7% vs -2.2% expected, while the Federal Housing Agency reported that its Housing Price Index increased by 0.7% in the same month, beating the consensus of 0.2%.

Ahead of the Federal Reserve (Fed) two-day meeting, markets await a 25 basis point (bps) hike and data-dependant approach by Chair Powell, as a robust economy and a tight labour market may make the Federal Open Market Committee consider another hike in September. 

In the meantime, the USD DXY Index continued to rise to 101.60 but then retreated towards 101.40, still holding gains while US Treasury yields traded mixed, with the 2-year rate slightly decreased to 4.90%.