Dollar is broadly higher this week so far as comments from Fed officials bolstered the case for rate hike within this year. The dollar index breached a minor resistance level of 95.84 and is now back pressing the 55 days EMA. The greenback is also supported by the rebound in US yields as 30 year yield is back above 3.00 level. Meanwhile, Euro is one of the weakest major currencies this week on talks that ECB could extend, or even expand the quantitative easing program to force inflation back to target if outlook worsens. In other markets, Japan is still on holiday today but other Asian indices are generally higher. European stocks opened nearly flat and is trading mildly lower at the time of writing. Gold is trading sideway below 1140 and crude oil is struggling between 44/48.
In US, echoing San Francisco Fed's John Williams and St Louis Fed's James Bullard, Atlanta Fed's Dennis Lockhart suggested a rate hike in September was a 'close call'. Lockhart noted that his vote to leave policy unchanged was due to "prudent risk management around recent and current market volatility". He added that "as things settle down", he would be "ready for the first policy move on the path to a more normal interest-rate environment". He is "confident the much-used phrase 'later this year' is still operative".
On the data front, Australian house price index rose 4.7% qoq in Q2, much higher than expectation of 2.5% qoq. China conference board leading index rose 1.0% in August. Swiss trade surplus narrowed to CHF 2.87b in August. UK public sector net borrowing, CBI trends orders, Eurozone consumer confidence and US house price index will be released later today.