The dollar index (DXY00) Wednesday rose by +0.34%. Weakness in the British pound underpinned the dollar Wednesday as GBP/USD fell to a 1-week low on better-than-expected UK inflation news. Also, the weakness in the yen Wednesday was positive for the dollar. Wednesday’s weaker-than-expected U.S. housing starts report limited the dollar’s upside, along with a decline in T-note yields.
U.S. Jun housing starts fell -8.0% m/m to 1.434 million, weaker than expectations of 1.480 million. Jun building permits, a proxy for future construction, unexpectedly fell -3.7% m/m to 1.440 million, weaker than expectations of an increase to 1.500 million.
