Forex
The pound touched a new 37 year low against the dollar during early Thursday trading, as the divergence between the two currencies is becoming clearer. The Federal Reserve’s decision to hike rates by 75 basis points may have already been baked into the value of the dollar but still the currency rose. The markets readjusted expectations to accommodate further increases in US rates, which will also be likely to stay in place for longer. Meanwhile, on the other side of the Atlantic, the pound languishes, despite it being widely assumed that the Bank of England will later today announce a rate hike of 75 basis points.
