Forex Trading

The U.K. pound is still struggling overall in forex trading on the currency market. Earlier today, sterling saw a sell off in currency trading.

However, for now, the U.K. pound appears to be doing better. The better than expected payrolls data out of the U.S. appears to be helping high beta currencies as risk appetite returns.

But it may be a bit premature for a celebration on behalf of the sterling. GFT's Boris Schlossberg reports in FX360 that the U.K. pound is still vulnerable, even with today's boost on the currency market:

As we noted yesterday, “The UK economy remains very vulnerable to the triple threat of declining house asset prices, weaker capital markets and the onset of fiscal austerity measures as we enter the fall season.”  Given these dynamics the 1.5000 level in GBP/USD could be breached within the next few weeks.

See Also

• Economic News and Currency Trading
  Forex trading on the currency market