21st December 2011
An increasing appetite for risk among forex traders is helping to push up sterling (GBP) against the US dollar (USD) today (December 20th).
FX Street reports GBP/USD has now risen to a two-week high of 1.5692 on the back of stronger than expected US housing data.
Valeria Bednarik, FXstreet.com chief analyst, noted "a daily close above [the] 1.5660 area may signal a short-term continuation rally towards the 1.5730/70 price zone, mid-term strong resistance area".
She added however that once the pair breach this last level there is likely to be less of a bearish tone to trading.
The figures from the US showed that housing starts rose by 9.3 per cent to 685,000 for the year to December 2011 - the highest reported level since April last year.
Meanwhile, GBP recently improved against the euro following a successful bond sale in Italy as although the auction was a success, the country's level of debts and the rate it is paying on these borrowings remain close to an unsustainable level.
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