Commerzbank Corporates & Markets: Performance of USD in July will not get anyone particularly excited

       Performance of USD in July will not get anyone particularly excited 

-The performance of the USD in July will not get anyone particularly excited, but is still quite passable. After all, the USD index was able to appreciate by roughly 1%. Slowly but surely the market seems to have overcome the GDP shock from late June, in particular as the majority of US data is positive. The same is likely to apply for the data on the US housing market.

-Both planning permissions and new builds had had a bit of a dampener in May, but are likely to have recovered notably again in June. Based on long term comparisons planning permissions in particular have recovered well from the crisis induced lows. Even if there is further upside scope on the US housing market that is unlikely to cause the Fed to question the normalisation of its monetary policy.