Sterling rises in forex trading

Yesterday, the sterling received a rather nasty beating in forex trading. Risk aversion set in, and the cable dropped in currency trading as equity markets around the world declined in value. Today, though, the story is changing a bit.

Inflation data out of Britain shows that things are picking up a bit. Indeed, the inflation data was rather surprising, and many have speculated that the British economy is in reasonably good shape. As a result, the sterling has largely recovered its losses from yesterday. GFT’s Boris Schlossberg reports in FX360 about what might be expected from the cable in currency trading today:

Today’s better than forecast inflation data should prove supportive to sterling for the rest for the rest of day if equity markets rally in North American session and the pair could make a run at the 1.6500 handle if risk flows return.

With the U.S. stock market already higher early in the session, it is little surprise that the cable has already reached the 1.6500 mark in currency trading and is heading higher.

See Also

• Cable in Forex Trading
  Currency trading on the FX market