Fed expects weakness to persist

At the monthly Federal Reserve interest rate meeting in the USA last night, as expected there was no change to the 0.25% base rate in operation.

Following news that ths US economy contracted more than expected during the first quarter, the Fed said “the economy has continued to contract”, adding that it would “remain weak for some time”.

The US Dollar has weakened overnight as a result, making transferring dollars to the USA around 1% cheaper than yesterday. Mid-market levels are at 1.4890 as at 9.40am.