Signs of Peace Progress in Ukraine Boosts the Euro and Weighs on the Dollar

The dollar index (DXY00) decreased today by -0.08 %. The dollar is under pressure today from the decrease in the Rati revenues. Also, the signs of progress in peace talks on Ukraine are strengthened by the euro/US dollar at the expense of the dollar. The losses in the dollar are limited due to the concern that the interest rates reports in July are stronger than last week last week can prevent interest rates from interest rates at the FOMC meeting next month.

American housing news was mixed today against the dollar. The US housing of the American July begins unexpectedly +5.2 % m/m to the highest level in 5 months at 1.428 million, stronger than a decrease to 1.297 million. However, the construction permits of July, a future building agent, decreased by -2.8 %/m to the lowest level of 5 years at 1.354 million, and weaker than -0.5 %/m to 1.386 million.

The dollar won some support today after the S& P Global rating confirmed its long-term rating and A-1 rating in the short term of American debt and said that the United States can maintain credit strength despite the financial strike of the last spending bill because customs tariff revenues “will generally weaken financial financial results.”

The markets are awaiting a continuous meeting between President Trump and European leaders on any progress towards ending the Russian -Ukrainian war. The result can have the effects of the macroeconomic economy with regard to tariffs and oil prices, and of course, it can have severe consequences for European security.

The markets continue to adapt to inflation expectations after the PPI Falcons report on Thursday. In the aftermath of the report, the markets have wiped any hopes in reducing the interest rate -50 BC at the Federal Reserve meeting in September and withdrew their expectations to reduce the interest rate to 84 % of 93 % before the report.

Future prices in federal funds deduct the chances of reducing an average of -25 basis points by 84 % at the FOMC meeting from 16 to 17 September and 53 % to reduce the second interest rate from 25 basis points on 28-29 October.

EUR/USD (^EURUSD) increased by +0.05 %. Euro moves a little higher today on the signs of progress in peace talks on Ukraine. American and European officials said they will immediately provide Ukraine with strong security guarantees to open a path to hold a meeting between the presidents Putin and Zellinski.