(MENAFN- Daily Forex) By: DailyForex.com
Strong U.S. retail data released on Tuesday did little to move the dollar, as traders seemed to take a step back as they wait for additional data which is expected later on Wednesday. Tuesday's reports once again called into question the possibility of another Federal Reserve interest rate hike before the end of the year despite the reduced expectations of late. Reports out on Tuesday showed that consumer spending rose in 10 out of 13 retail sectors in July, rising 0.6 percent overall. Perhaps just as significantly, upward revisions to sales in May and June reduced concerns of a possible economic downtrend in the United States.
The dollar index was trading flat as of 10:31 a.m. HK/SIN on Wednesday, at 93.83 .DXY. The dollar remained relatively stable in early Wednesday trade after rallying on Tuesday afternoon. The euro was up 0.04 percent against the dollar to $1.1739. The dollar was unchanged against the yen, trading at 110.66 yen.
On Wednesday at 2 p.m. EST the minutes from the most recent Fed meeting will be released, and traders are looking for hints about the country's inflation levels and the possibility for an upcoming rate hike. Housing starts data and the business leaders survey will be released at 8:30 a.m. EST, providing a fuller picture of the U.S. economy.
Despite positive retail data, American household debt levels reached record highs in the second quarter of 2017, hitting $12.84 trillion in the second quarter, up $552 billion from last year. Delinquent debt, percentagewise, remained stable as compared with Q1. Mortgage debt was also higher in the second quarter, up $329 billion from last year.
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