Nahb Housing Market Index

The S&P 500 pulled back as traders weighed hawkish remarks from Fed Chair Warsh, stronger economic projections and a firmer retail sales backdrop. Housing sentiment weakened under high interest rates, adding another layer of uncertainty for equity investors.

The U.S. dollar moved higher as traders positioned for the Federal Reserve interest rate decision, with retail sales data strengthening the near-term case for dollar demand. EUR/USD and GBP/USD softened, USD/CAD pushed to new highs, and USD/JPY remained pinned near a major resistance zone.

The U.S. Dollar Index is under pressure as traders reduce expectations for a more hawkish Federal Reserve stance at the next September meeting. EUR/USD and GBP/USD are testing higher levels, while USD/CAD and USD/JPY remain shaped by Canadian inflation data, Japan growth figures and intervention risk.

The U.S. dollar gained ground after retail sales matched expectations and jobless claims pointed to a resilient labor market. Major currency pairs moved unevenly, with EUR/USD and GBP/USD retreating while USD/JPY climbed alongside Treasury yields.