Forex - Dollar weakens 16-year low US Consumer Confidence
The Dollar retreated on Tuesday as a lower US consumer confidence, 16-year low in June, and declining home prices raised doubts about the Federal Reserve’s ability to hike interest rates to stem inflation.
The Fed began a two-day monetary policy meeting on Tuesday, with analysts expecting the US central bank to hold interest rates steady at 2%. But traders will pore over the Fed’s accompanying statement for clues about possible hikes later in the year.
US short-term interest rate futures trimmed the chances of a rate hike in August to 70% from 74%.