The US dollar had a disappointing day yesterday despite better-than-expected existing home sales data from the US. Following a week where the dollar briefly approached five-year lows against sterling, it once again came close to these levels again yesterday amid sustained confidence in sterling ahead of the release of minutes from the latest meeting of the UK central bank. After briefly reaching two-week highs against the euro, the dollar fell off in advance of the release of existing home sales data. Expectations that these sales were set to decline proved unfounded as they showed an increase. This saw the US dollar recover much of the ground which it had lost against the euro throughout the day.
Today sees the release of new home sales data throughout March, which are forecast to have increased slightly.
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