FX Closing Comments

FX pair were tame today, though the nod went to the Dollar. The durable goods report was generally well received by the stock market, as non-defense portion was healthy at 1.5%. All in all, markets are cautious and range bound are likely to remain so for the next few sessions. The key figure for next week will be the PCE deflator, the Fed's preferred inflation measure, and presently most analysts expect that the FOMC will leave rates alone next month. Signs continue to point to a 2nd-half slowdown and today's sizeable dip in new homes sales (-4.2% through July) fits into this pattern.