US import prices fall 0.4%, export prices drop 1.3% in July

Import prices fell 0.4% in July (vs. +0.1% expected) and export prices dropped 1.3% (vs. +0.2% forecast), signaling deflationary pressure. Housing data was mixed: building permits rose 5% to 1.443M but housing starts plunged 12.4% to 1.239M. Softer prices support dovish Fed narrative; weak housing starts underscore economic slowdown concerns affecting USD.