Sterling weakened after London equities fall

The pound weakened considerably against the US dollar yesterday, falling 1.47 cents (0.89%) to finish at $1.6345.

• In early trading yesterday, sterling weakened against the dollar as investor jitters before tomorrow’s US Fed policy meeting helped the US currency and curtailed demand for higher-risk currencies like the pound.
  
• A survey released by UK property website Rightmove show ed a 0.4% fall in house prices in June after four months of rises also weighed on the pound.
  
• With data thin in the UK this week, sterling will generally take its lead from broader market movements, particularly London equity markets. The FTSE 100 finished the day down 111.88 (2.57%) yesterday, pulling the pound down with it.
  
• In trading so far today, the pound has continued its slide against the greenback, as investors warily eye tomorrow’s US Fed interest rate meeting.
  
• There are no major announcements due in the UK today, whilst in the US Existing Home Sales are out at 15.00 BST.