Better U.K. Trade Deficit Stabilizes British Pound
Interest Rates Driving Euro and British Pound Higher
The surprise this week in the Forex markets is the inability of the U.S. Dollar to attract fresh investors given the escalating problems in the Middle East and North Africa. With crude oil and gold rising as traders take protection, many traders thought the Greenback would benefit from flight-to-safety buying.
The British Pound is trading flat to slightly higher this morning after it was reported that the U.K. economy unexpectedly contracted in the final quarter of 2010. Fourth-quarter gross domestic product declined by 0.5% compared to the previous quarter. This was the first decline since the third quarter of 2009. The report also severely missed pre-report forecasts calling for a 0.4% rise.
Speculators Paring British Pound Positions after Weak Retail Sales
British Pound Posts Strong Rally after Testing 50% Level
Fundamentals, Technicals Drive British Pound Higher
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