The dollar strengthened against sterling to a new 37-year high yesterday around the Federal Reserve’s highly anticipated interest rate decision. This morning however, it has slipped back fractionally.
America’s latest existing home sales figures revealed the annual sales rate had fallen to 4.8 million. The fall was slightly larger than the 4.7 million markets had priced in, but fell in line with expectations of a seventh consecutive decline for sales.
This drop in home sales reflects the current rise in US mortgage rates which is likely to continue rising, following the Federal Reserve’s latest interest rate decision yesterday. Market’s saw the Fed raise interest by 75 basis points to 3.25% (as anticipated), seeing US borrowing costs hit their highest levels in 14 years.
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