Sterling Falls in Currency Trading

Today, it appears that risk appetite is on the run in forex trading. The realization that the economic recovery probably won't take the form of a V has prompted many investors to re-evaluate their current positions. This is resulting in a rather sharp drop for the sterling in currency trading.

Indeed, the cable is being pummeled in forex trading today as a number of factors come into play. While equity markets offers one of the problems, sterling is also being hurt by economic news in Britain. GFT's Boris Schlossberg reports in FX360 on the cable in forex trading:

Cable was the weakest major of the night dropping nearly 200 points to 1.6320 after Rightmove housing survey showed that prices decreased -2.2% versus 0.6% gain the period prior. This was the sharpest drop in 8 months and cast doubts on the assumption that prices in the UK housing market were beginning to rebound.

It appears as though some more struggles are ahead for the sterling in currency trading on the FX market. Recent highs have been unsustainable, and the cable will be looking for new levels of support.