Daily Morning Report 18.08.2015

The U.S. dollar was steady against the euro and the yen on Tuesday as investors looked ahead to reports on the U.S housing sector later in the day for fresh cues ahead of Wednesday’s Federal Reserve minutes.

The greenback remained supported despite a weak reading of U.S. manufacturing activity as concerns over the devaluation of the yuan eased.

Data on Monday showed that manufacturing activity in the New York region slumped to its lowest level since November 2009 this month as new orders fell sharply.

This was offset by another report showing that US house builder sentiment rose to its highest level in nearly a decade this month.

The U.S. was to release data on housing starts and building permits later Tuesday.

EUR/USD was at 1.1072, little changed for the day.

USD/JPY was at 124.37, holding above the lows of 123.78 set last Wednesday as the yuan fell.

Investors were looking ahead to Wednesday’s minutes of the Fed’s July meeting, which it was hoped would provide more clarity on its plans to hike short-term interest rates for the first time since 2006.

The US dollar index, which tracks the greenback against a basket of six major rivals, was firm at 96.91, having pulled back from last week’s one month trough of 95.94.