With London out for its late-summer bank holiday the dollar has shifted into consolidation mode. The focus seems to be shifting toward outlook for global growth once again as the market begins to look paste the tensions between Russia and Georgia and factors-in the notion that equity holders in Fannie and Freddie are probably dead-men walking. GBP has been an under-performer as the market penalizes the pound on the assumption that the BOE will begin cutting rates once inflation rolls over.
US action is light until 10 am Eastern when we get existing home sales (a rebound is expected) and the Chicago Fed national activity index.
