Sterling Holds Its Own in Currency Trading

U.K. pound up a little higher in forex trading

The sterling is holding its own in currency trading against the U.S. dollar right now. Even though the U.K. pound should be dropping in forex trading right now, it is making a small gain on cautious optimism.

There has been a slight return to risk appetite on the currency market, and that generally favors the sterling. However, it may not last. With retail sales continuing to drop, and with expectations for British GDP falling, there isn’t much to support the U.K. pound in forex trading at the fundamental level.

Another thing that might be helping sterling is that the euro is falling so precipitously in forex trading against the U.S. dollar right now. That is bringing some of the focus off the problems facing the U.K. pound.