Sterling rises versus dollar in Forex trading
July 26th, 2010Sterling rose to hit a three-month high against the dollar today (July 26th) amid a belief the European economy may be improving.
Reuters reports by 08:36 BST, sterling had risen to $1.5502, an increase of 0.4 per cent on the day, poking above options-related barriers suspected around $1.5500 to hit its highest level in Forex trading since mid-April.
Figures on Friday showed the UK economy improved by 1.1 percent in the second quarter, suggesting the economy was on a much better footing than many had thought and this was still supporting sterling today.
However, the news agency stated there is some belief from investors that growth momentum may stutter as the UK government implements deep spending cuts and tax rises later this year.
Ian Spreadbury, Fidelity’s strategic bond manager, recently suggested in his 20 years as a fund manager he has never had to work in such uncertain times, as it is currently unclear whether the economy is improving or making a return to recession.
Loading ...
