Disclaimer: Forex trading involves high risks, with the potential for substantial losses and is not suitable for all persons. The views expressed in this blogsite are those of the author(s) and do not necessarily reflect the official policy, position, or opinions of Global Forex Trading. Excerpt from: Forex Forecast
|  | | August 05, 2008 | | Sterling in currency trading | The forex trading forecast for the UK pound is one that looks bleak -- and one that is dominated by expectations of slowing economic growth.
Industries are contracting in Britain, and this is affecting the sterling in currency trading on the FX market. The pound is dropping especially against the yen in FX trading as the carry trade continues to unwind.
One of the main factors in the sterling's decline is an expectation that, at some point, the BOE will have to cut interest rates. Bloomberg reports on the forex trading forecast for the UK pound, in terms of interest rates:
``Sterling is the last man standing,'' said Paul Robson, a
London-based currency strategist at the Royal Bank of Scotland
Group Plc. ``With other central banks already cutting rates,
people are going to think the Bank of England is next.'' | Topic Tags: currency trading FX market, forex trading forecast, forex trading UK pound, pound FX trading, sterling currency trading, yen carry trade, yen FX trading | |
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