There are a number of factors that are weighing on investor sentiment Tuesday, chief among them being fears about military invention by the West in Syria. With risk appetite among investors declining, safe havens like the U.S. currency ordinarily benefit. However, the dollar is giving back some of its early gains against its major European competitors, after the release of some weaker than expected housing data.
Home prices in major U.S. metropolitan areas continued to increase in the month of June, according to a report released by Standard & Poor's on Tuesday, although the price growth came in just shy of economist estimates.
The report said the S&P/Case-Shiller 20-City Composite Home Price Index rose by a seasonally adjusted 0.9 percent in June after rising by 1.0 percent in May. Economists had been expecting the index to show another 1.0 percent increase.
Consumer confidence in the U.S. unexpectedly saw a modest improvement in the month of August, according to a report released by the Conference Board on Tuesday, with the increase reflecting improving short-term expectations.
The Conference Board said its consumer confidence index edged up to 81.5 in August from an upwardly revised 81.0 in July. The modest increase came as a surprise to economists, who had expected the index to dip to 78.0 from the 80.3 originally reported for the previous month.
The U.S. has accused the Syrian government of trying to cover up the chemical weapons attack in a rebel stronghold near Damascus last week. The Obama administration will be making an informed decision on how to respond after consulting with its allies and the Congress.
At a press briefing on Monday, Secretary of State John Kerry blamed the regime of Syrian President Bashar al-Assad for the "cowardly" attack against civilians, and said the use of chemical weapons was inexcusable and "undeniable."
U.S. Treasury Secretary Jack Lew also announced yesterday that the country will hit its debt ceiling in mid-October, unless Congress votes to increase it.
The dollar climbed to an early high of $1.3321 against the Euro on Tuesday, but has since dropped to around $1.3390.
Confidence among German businesses continued to improve, reaching a 16-month high in August, as companies are more satisfied with their current situation amid the economy moving up a gear.
The business confidence index improved more-than-expected to 107.5 in August, the highest since April 2012, from 106.2 in July, results of an Ifo Institute survey, based on 7,000 responses, showed Tuesday. Economists had forecast the index to rise to 107 in August.
The greenback also broke out to a week and a half high of $1.5480 against the pound sterling early Tuesday, but has since retreated to around $1.5540.
Business activity in the U.K.'s service sector grew to its highest level since 2007, while confidence rose strongly, a quarterly survey by the Confederation of British Industry (CBI) revealed Tuesday. Business and professional services witnessed a particularly sharp turnaround in business volumes during the past three months, CBI said in the report. Activity in consumer services picked up further.
Structural reforms are pivotal in determining the ability of Abenomics to generate a higher rate of sustained economic growth in Japan, Moody's Investors Service said in a report on Tuesday.
"On this front, the government's plans remain largely a work in progress," as Prime Minister Shinzo Abe and his Cabinet continue to formulate details, the rating agency said.
The government has outlined a broad growth and fiscal strategy, but specific measures and a concrete timetable remain outstanding, it said.
The buck has been steadily weakening against the Japanese Yen since hitting Y98.740 yesterday afternoon and has dropped to a 4-session low of Y97.128 on Tuesday.
Confidence in Japan's small-scale industries sector improved in August after weakening in the previous month, survey results published by the Shoko Chukin Bank showed Tuesday. The business sentiment index, which is designed to measure confidence among entrepreneurs in the small-scale industries sector, moved up to 49.7 in August from 49.4 in the previous month. In June, the reading was 49.6.
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Forex News
May 22, 2026 14:46 ET Minutes of the latest Fed policy session was the highlight of the week along with survey data on the U.S. housing market. In Europe, survey data signaled the trends in the euro area private sector. Further, consumer price inflation data from the U.K. was in focus. In Asia, various economic indicators from China drew attention to the health of the economy.