The dollar weakened yesterday morning, but had largely regained those losses by the end of the day against sterling, and this has been boosted by UK inflation today.
Yesterday’s mixed signals on housing, which is directly and rapidly affected by interest rate policy, will have given little guidance to the members of the Federal Open Market Committee (FOMC) as they deliberate on interest rates today. The Fed’s decision will come at 7pm UK time but the betting is on rates being held. Hold on for the press conference, however, as it may be instructive on future policy.
The next big data event will be PMI on Friday.
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USD/GBP past year
