Forex Analysis

Sterling Falls in Currency Trading on the FX Market

U.K. budget deficit sends pound lower in forex trading

The sterling is falling to the U.S. dollar and the euro in currency trading on the FX market today. News that the U.K. budget deficit is widening has sparked fears of continuing recession and weakness in the pound in forex trading. Currencies are supported by the strength of their economies. Right now, the British economy is showing weakness as public borrowing continues and the budget deficit widens. This in turn casts doubt on the support the sterling is likely to receive in currency trading, and sends it lower. Concerns about the amount of debt the British government is incurring during this recession as it tries to stimulate the economy are likely to dominate the pound in forex trading today.

U.K. Pound in Forex Trading Currency trading on the FX market http://www.fx360.com/?aid=5704 Topic Tags: budget deficit, currency trading FX market, forex trading, FX market, pound forex trading, sterling currency trading, U.K. deficit

by mmarquit | ↑top | link to this

July 20, 2009

Risk Appetite Out in Force in Forex Trading

High beta currencies move higher on the forex market

Risk appetite is making a major comeback in forex trading on the currency market this morning. High beta currencies are heading higher, thanks to help from optimism from investors. GFT's Boris Schlossberg reports in FX360 on the incidence of improved risk appetite: Risk appetite returned with a vengeance on the first night of trade this week with EUR/USD taking out the 1.4200 handle as it hit highs not seen in more than a month while cable rose to take out barriers at the 1.6500 figure. Positive equity performance in both Asia and Europe along with news that CIT may be able to avoid bankruptcy helped to revive risk appetite in high beta FX and push the currencies to the top of their recent ranges. The sterling and the euro are both moving higher in forex trading on the news. The currency market is embracing the news that stock markets are higher in Asia and Europe, and that the U.S. stock market appears to be rallying out of the gate, thanks to recent CIT news. With this much optimism, it appears that the need for the U.S. dollar as a safe haven investment has been limited.