Cable Decouples from Risk Appetite - Forex Forum

Sterling in currency tradingpfont size="2" face="verdana,arial,helvetica,sans-serif"One of the more interesting developments over the past few days has been the bdecoupling of the cable from risk appetite/b. Instead, the sterling in currency trading has been based more on U.K. fundamentals. This might be the reason that today's a href="item/237176" target="_blank" title="quantitative easing, cable forex trading, forex trading, sterling currency trading, currency trading, FX360, Boris Schlossberg"quantitative easing announcement/a from the Bank of England, along with its lukewarm reasoning on the economy, has sent the sterling lower in bcurrency trading/b./font/p pfont size="2" face="verdana,arial,helvetica,sans-serif"Over at FX360,b Boris Schlossberg/b expresses his opinion about a href="http://www.fx360.com/commentary/boris/1227/calm-before-the-storm-as-euro-and-pound-await-cb-decisions.aspx?aid=5704" target="_blank" title="quantitative easing, cable forex trading, forex trading, sterling currency trading, currency trading, FX360, Boris Schlossberg"the decoupling of cable from risk appetite/a:/font/p blockquote p font size="2" face="verdana,arial,helvetica,sans-serif"In the past several days, the unit has decoupled from risk appetite, remaining strong despite lack of further gains in equity prices as currency traders have focused on bimproving UK fundamentals/b instead. However we continue to believe that the uptick in UK economic data is a direct result of much better capital market performance and could quickly reverse if equities see a correction. To that end, bthe trade in sterling very much remains a trade in risk/b./font/p /blockquote pfont size="2" face="verdana,arial,helvetica,sans-serif"It will be interesting to follow further developments, and see how things play out in bforex trading/b going forward. /fontbr //ph3See Also/h3ullia href="http://www.fx360.com/?aid=5704" target=%quot;_blank%quot;Sterling in Currency Trading/abr/Forex trading with world currencies/li/ul

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