The US$ has surged again in recent days against the Pound as funding is attracted to help the global banking system out of its quagmire. This strength has caught many currency traders off guard. They felt that the recent surge was a temporary one that was over now. They may not be far wrong as this may still prove to be a short term spike. However, I feel that it is a cyclical turning point too and that the US$ will most likely enjoy a period of strength for some several months.
