British Pound: A Puppet of Risk Appetite

There was no economic data released from the UK today and the only news out the country was a bad one since Cheyne Financial is a UK based hedge fund.

Yet, the British pound rose strongly against the Euro, US dollar and Japanese Yen which means that the currency was nothing more than a puppet of global market risk appetite. Tomorrow may be a bit different however with Nationwide house prices, consumer credit, mortgage lending, money supply and the CBI distributive trades survey all due for release. Housing market reports should be a bit softer after the drop in mortgage approvals reported yesterday. Meanwhile keep an eye on the CBI survey since it tends to be a good leading indicator for retail sales. Both of these reports are expected to be weaker which means that the British pound could give back some of today?s spectacular gains.