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US consumer sentiment disappointed and fell to 80 points. It was expected to tick up from 85.1 to 85.6 points in August 2013. These levels were last seen in the summer of 2007. We might see an upwards revision, but this usually doesn’t have the same effect of the initial publication.

The dollar was somewhat weaker before the publication, with EUR/USD trading above 1.3350 and USD/JPY at 97.30. The initial reaction is mixed. The real action might come with a delay, as we’ve seen beforehand.

Inflation expectations have remained unchanged at 3.1%. Other sub-components dropped.

According to Forex Live, there are big option expiries coming now.

Update: EUR/USD is weakening after the release, and it is off the highs.

Earlier, housing starts and building permits came out within expectations. After currencies hesitated and remained in the tight range, the dollar extended its weakness. Markets made a “dollar meltdown” yesterday.

It’s important to note that liquidity is low in the long summer days. As traders are heading for the weekend, we could see some last minute scrambling and even wild action.

Further reading:  How to trade forex with pivot points