Positive Signs For Sterling As Global Stimulus Efforts Remain In Place

“Traders are currently backing the Australian dollar, Euro and Sterling over the US dollar.

“The US dollar is trading lower across the board as global stock markets start the week on a positive note on the back of increasing investor risk appetite. The G20 meeting held over the weekend concluded that global stimulus efforts should remain in place. The Federal Reserve is expected to keep interest rates low for some time which will keep the pressure on the US dollar. Trading was interesting after Friday’s horrific US employment data lead to dollar buying pushing cable down to 1.6515 however any gains were swiftly lost as cable finished the day back above 1.66. This morning’s cable has traded to a high of 1.6843.

“Sterling is also holding its ground against the Euro, currently above 1.12. This week, on Wednesday, the Bank of England will publish its quarterly inflation report and analysts are expecting a more positive note for UK economic growth after last week’s extension of the bond purchase programme by only £25 billion.”

Wednesday 11 November 2009, 11:05am

Tags: Australian dollar, Federal Reserve, G20 meeting, global stock markets, us dollar, US employment data