Trading strategies could help Forex dealers make sense of fluctuations in currencies today (July 7th) as the pound dropped back following significant gains in yesterday's session.
The currency fell to $1.5082 at its lowest point, but by 14:42 BST had rallied to $1.5160, Reuters reports.
Lack of US stock market confidence following poor employment data over the long weekend allowed sterling to rise against the dollar, but UK job data depressed speculator behaviour, casting doubt on long-term recovery and making traders risk-averse.
Fiscal tightening had previously shored up market faith, but the impact of lower spending and higher taxes is now beginning to filter through and worry investors, suggests the news agency.
Sterling has gained against the US currency since mid May, but experts claim the trend may not last and the pound will fall back after its recent peak.
It was trailing at a two-week low versus the euro this morning as buyers invested in the single currency to cover short positions.
