Sterling Gains in Currency Trading

by Trader Rich

U.K. pound rises after Chinese economic stimulus announcedThe euro is not the only currency benefiting from the newfound risk appetite following the announcement of a Chinese economic stimulus package. Right now, the sterling is reaping the benefits as well in currency trading.

As stocks are supported by the announcement that China will work to prop up its economy, the U.K. pound is rising against the U.S. dollar in forex trading on the currency market.

Additionally, the sterling is being supported by some of the measures being suggesting by the British government. Some reports are of tax cuts on the elderly, families and small businesses in the name stimulating economic growth in the U.K.

Another thing helping the sterling in currency trading is the massive interest rate cut last week, which is seen as proof that the British government is serious about turning things around economically.