“The report showed that builder confidence increased as interest rates moved lower.”, — write: www.fxempire.com
The National Association of Home Builders commented: “With inflation moderating, the Federal Reserve is expected to begin a cycle of monetary policy easing this week, which will produce downward pressure on mortgage interest rates and also lower the interest rates on land development and home construction business loans.”
Today, traders also had a chance to take a look at the Business Inventories report for July. The report showed that Business Inventories increased by 0.4% month-over-month, compared to analyst consensus of +0.3%.
U.S. Dollar Index moved away from session highs as traders reacted to the better-than-expected NAHB Housing Market Index report. From a big picture point of view, traders are waiting for the Fed decision, which will be released tomorrow.
Gold settled near the $2580 level as traders took some profits off the table near historic highs.
SP500 tested session highs after the release of the housing market data. Traders stay focused on dovish Fed.