USD: Focus On FOMC Minutes; Long USDs Begin To Look Tactically Attractive Here

Barclays Capital Research expect the FOMC minutes from the July meeting on Wednesday to contain hints on the degree of concern that FOMC members have about the state of inflation pressures, as in the last statement the FOMC softened its description of the inflation incoming data.

"The FOMC has also indicated that it is ready to announce the beginning of balance sheet normalization.

As such, the minutes are likely to signal that the official announcement will come at the September FOMC meeting, as is our baseline," Barclays adds.

On the USD front, Barclays expects some rebound late this year and early next year arguing that at current levels, long USD positions are beginning to look attractive from at least a tactical perspective.

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US building permits for July 1223K vs. 1250K estimate

Building permits 1223K vs 1250K est. Last month was was unrevised at 1275K
Building permits are -4.1 percent below the revised June rate, but is +4.1 percent above the July 2016 rate
Single family permits came in at 811K, unchanged from June. Multi family units came in at 377K
Housing starts were 1155K vs 1220K est. Last month was revised lower a tad to 1213K vs 1215K originally reported.
Housing starts are -4.8 percent below the revised June estimate and is -5.6 percent below the July 2016 rate
Single family housing starts came in at 856K, down -0.5% below June 860K. Multi family housing starts came in at 287K

US July Building Permits Fell 4.1%, Housing Starts Register Annual Decline

US building permits declined 4.1% for July to an annualised rate of 1.22mn from a revised 1.28mn in June which was originally reported as 1.25mn. This was below consensus forecasts of a figure close to 1.25mn, although there was still an annual increase of 4.1%.

Single-family permits were unchanged on the month at 811,000 and there a decline in permits for buildings designed for 5 or more families after the strong recovery seen in June.

US Industrial production up 0.2% vs 0.3%

The Industrial production headline has been released early it seems with the number coming in at 0.2% vs 0.3% estimate.
The Capacity Utilization is at 76.7% vs 76.7% estimate.
Manufacturing production -0.1% vs +0.2% estimate
Mining output +0.5%
Utilities +1.6%
Motor vehicle assembly rate 10.29M units/year
industrial output ex cars and parts +0.4%

Re: USD news

Gross Domestic Product news is still 3 days away with a forecast of 4.0 but rumor has it 4.8% GDP print for Q2 (Bullish USD).
The focus this week will be trade talks with EU/Trump tomorrow and USD GDP news this Friday.
USD market sentiment will be bullish all the way until Friday's GDP news.

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