FX Closing Comments

FX Markets were fairly tame today. The Dollar index closed up 5 ticks before the important CPI figures, which are expected at 7:30 tomorrow, just before Ben Bernanke begins testifying to the Senate. Market expectations are split on whether or not the Fed will move a notch higher or pause in August. Tomorrow's data could be a decisive factor. Core CPI is expected to growth .2% from the previous month. Anything higher would be a strong sign that rates are headed higher.