The dollar index (DXY00) today is down by -0.23% on dovish comments from Chicago Fed President Goolsbee, who said the US labor market and some leading indicators on the economy are flashing warning signs. The dollar is also lower on today’s weaker-than-expected US July housing starts report. The dollar recovered from its worst levels after the University of Michigan’s Aug US consumer sentiment index rose more than expected.
US July housing starts fell -6.8% m/m to a 4-year low of 1.238 million, weaker than expectations of 1.333 million. July building permits, a proxy for future construction, fell -4.0% m/m to a 4-year low of 1.396 million, weaker than expectations of 1.425 million.
