Sterling Hits 1.67 in Currency Trading

U.K. pound gains on the risk trade in forex tradingThe [B]risk trade[/B] is alive and well today as high beta currencies head higher in forex trading. The euro is consolidating its gains against the [B]U.S. dollar[/B], helped along by gold prices that continue above $1,200. Even with warnings that a gold asset bubble may be forming, forex traders are eager to take advantage of dollar weakness and advance the risk trade. This has been quite helpful to the sterling in [B]currency trading[/B].

The U.K. pound is one of the major currencies that benefits most when [B]forex traders[/B] are feeling risk appetite. Additionally, comments by policymakers about the prospects for the British economy are fueling some of the confidence in the sterling in currency trading on the FX market. However, things may not remain so good for the pound. GFT’s [B]Boris Schlossberg[/B] reports in FX360 on the possible future for the sterling:

Despite pound’s impressive gains today w[B]e remain skeptical of this rally which may be distorted by corporate flows in EUR/GBP[/B]. UK economic data this week has been mixed at best with both consumer confidence and manufacturing PMI readings missing the mark. If tomorrow’s PMI services data surprises to the downside pound could be vulnerable to a sell off once the corporate demand on the crosses goes away.

Clearly, there is the risk of a sell off tomorrow, so it is important to be careful, and consider your [B]forex trading strategy[/B].

[B]See Also[/B]

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[li]Looking for Trends in Forex Trading[/li]Currency trading on the FX market
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