FX Closing Comments

The Dollar came under some pressure and sold-off in the afternoon, after the release of the Fed's beige book report. The influential report cited a widespread slowdown in the rate of economic growth, which indicated to traders that the Fed might pause on August 8th. The Fed Funds market was pricing in only 34% chance of another .25 rise at the end of the day. Many analysts were quick to note that the report validates much of what Fed Chairman Bernanke argued during his recent testimony to Congress. Looking ahead, tomorrow will bring the June durable goods report, which is expected to rise by 3% with the ex-transportation number expected at 1%. New homes sales are expected to slide to 1,180k annual for June.