Dollar slips as bets mount for less hawkish Fed, euro above parity

Looking ahead to next week’s FOMC meeting, markets are expecting another 75 basis point hike, although sentiment is building that the Fed will opt for a smaller increase in December. Housing data released this week, which showed that U.S. single-family home prices sank in August and sales of new U.S. single-family homes dropped in September, added to the case that the Fed’s aggressive tightening cycle is already working to slow the economy.