By Tom Holian

Already today we have seen massive gains for sterling against the dollar as risk appetite increases on hopes of coordinated steps by Group 20 leaders and better than expected housing data.

Sterling is up 1.54% today against the US dollar to the interbank rate of 1.4694, the highest levels we have seen for a long time.  Recent positive UK house price data and an increase in European and US stock markets today have given the British currency a push in the right direction.

Could this be a more permenant move?  Perhaps not.  Sterling is still seen as a risky currency, so it is more likely than not that when everything settles down and investors wind down and look to make a profit, then sterling will surely fall.