Sterling down in forex tradingThe risk trade is coming to a rather dramatic end today on the [B]FX market.[/B] Cracks in the risk trade began appearing last week, as the U.S. dollar began gaining strength in forex trading. This sent the U.K. pound lower in currency trading. And today, the greenback continues to gain as the sterling heads even lower in [B]forex trading[/B].
Even with economic indicators pointing to a possible bottoming out, the risk trade is not particularly popular right now. GFT’s [B]Boris Schlossberg[/B] describes in FX360 the fall of the sterling in forex trading:
Sterling was the first G-7 currency to react positively to the recovery trade at the beginning of 2009 and is now the first to lose momentum even as equity prices continue to appreciate. [B]We have been arguing for some time that the unit may be acting as forward indicator to the overall currency market[/B], presaging a possible broader rebound in the dollar as risk appetite begins to subside.
[B]See Also[/B]
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[li]Sterling in Forex Trading[/li]Currency trading on the FX market
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