FX Closing Comments

FX markets were especially tame today, with the Dollar Index up only 4 ticks. The Dollar has been under pressure throughout the week and today it managed to hold steady. It is likely that traders were happy to wait on the sidelines until next week's home sales data hits the market. A continued slide in the housing sector increases the likelihood that the hoped for "soft landing" may become a bit harder than expected. Such a scenario is not helpful to the Dollar. Monday's new home sales are expected at 1.06m annually through August.