U.K. Pound Bids for Recovery in Currency Trading

October 13, 2008 by Trader Rich

Sterling gains against dollar in forex tradingThe U.K. pound is making a dramatic bid for a recovery in currency trading on the FX market today, as it surges to the largest advance it has had in about four years.

News that the British government is planning to support its biggest banks, along with similar moves in Europe and in other countries, is helping return some stability to the financial markets. This means that there is some good news for currencies that are not the U.S. dollar in forex trading.

The current trend, however, does depend on how well these measures work. Bloomberg reports on the optimism in the market right now:

“The Bank of England and the U.K. Treasury are really taking the lead internationally in developing a clear and vigorous plan to fix problems in the financial system,” said Robert Minikin, a London-based currency strategist for Standard Chartered. “The action has been viewed very positively here and overseas in the foreign-exchange market.”