Date: Thursday 08 Jul 2010
The dollar fell against both the euro and sterling Wednesday after a surge on Wall Street made risky equities more attractive.Struggling stock markets had sent investors to the relative safety of both the lower-yielding greenback and yen in early trade.
Bank shares were the top performers after State Street upped its forecasts for second quarter profits, raising the prospect that others could follow suit.
The return of risk appetite took the pound above $1.52 ahead of today’s Bank of England policy meeting, although any change to interest rates would be a shock.
Sterling improved slightly against the single currency, although concerns about the potential impact of tax hikes and spending cuts are beginning to worry traders.
A number of weaker than expected economic announcements recently have also made the pound look pricey, while technical levels are indicating a tough time ahead. 
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