The forex markets continue to trade without a clear direction as markets are awaiting for Fed chair Janet's clue on the timing of the next hike in federal fund rate. Meanwhile, Fed released the minutes of the discount rate meeting in July. The discount rate is the interest rate Fed charges commercial banks for emergency loans. According to the minutes, eight regional Fed banks called for a hike in the discount rate, comparing to six in June. Those include Federal reserve banks of Kansas City, Richmond, Cleveland, San Francisco, Boston, St. Louis, Philadelphia and Dallas. The minutes noted that "actual and expected strengthening in economic activity and their expectations for inflation to gradually move toward the 2 percent objective." That's seen by some analysts as a message that policy makers were prepared to move on regarding monetary policies.
In Eurozone, ECB executive board member Benoit Coeure noted that "if there is not much taking place on the structural reform front, if there is not much taking place on the fiscal policy front, from what can be done, then the ECB would have to do more." However, Coeure warned that ECB actions would come with "side-consequences - possible future risk for financial stability" even though the central bank "mitigated, managed, curbed those risks" so far.
On the data front, German will release Q2 GDP final today while UK will release BBA mortgage approvals. US will release house price index, existing home sales and crude oil inventories.