While a new batch of economic data is set to be a released on Wednesday, the FOMC minutes for the U.S. central bank’s July meeting are set to take center stage during trade.
Set to come out at 2 p.m. ET, investors will pore through the meeting’s minutes to see what the Federal Reserve currently thinks about the state of the U.S. economy, and where their strategy could be heading.
According to the CME Group’s FedWatch tool, chances for a rate hike in December were about 45 percent.
Some investors remain skeptical about another rate hike coming this year given the recent weak inflation data. Inflation is a key component used by the Federal Reserve to determine their course of monetary policy.
On the data front, the lowest mortgage interest rates since November did little to encourage people to refinance their home loans or take out a new loan to buy a home.
Total mortgage application volume rose just 0.1 percent, seasonally adjusted, last week from the previous week, according to the Mortgage Bankers Association. Volume was nearly 22 percent lower that a year ago.
U.S. housing starts came in shy, totaling 1.155 million in July vs 1.22 million starts expected.
source : CNBC