U.K. Pound Surges Higher in Currency Trading

Sterling hits a 12-day high in forex trading

After struggling yesterday, the U.K. pound is surging higher in currency trading today. Earlier, sterling hit a 12-day high in forex trading, nearly reaching the 1.6600 level. The U.K. pound has backed off a little, moving back into the 1.65 area, but there is potential for more gains in the near future. GFT's Boris Schlossberg points out in FX360 what may help fuel future gains by the U.K. pound in currency trading:

The pound hit a 12 day high today in early European trade coming to within a few points of the 1.6600 figure, fueled by strong buying from the Middle East that suggested the pair might make a run at its 2009 highs of 1.6666 in the near future.

Sterling does well in forex trading when there is a degree of risk appetite. Although risk aversion appeared to be setting in yesterday, things may be changing today. A lot of how well the U.K. pound does in currency trading will partially depend on how equities do today.