The dollar fell against the euro and the pound yesterday following disappointing data.
Initial jobless claims figures, which measures the number of Americans filing for unemployment benefits, increased to 218k last week. This was 21k higher than last week, 18k higher than markets had predicted and the highest reading since January.
Existing home sales also missed expectations, declining by 2.4% in April, the lowest since June 2020 and the third consecutive month of decline.
Speaking yesterday, Kansas City Fed President and FOMC member Esther George said that higher interest rates are now necessary to lower inflation but that she was comfortable at the current rate of 50 basis points. “I’d have to see something very different to say we need to go further than that,” she added.
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