Could the U.K. Pound See Solid Gains in the Last Half of 2011?

Sterling expected to appreciate later this year

The U.K. pound is expected to see solid gains as we move into the second half of 2011. Indeed, sterling is the only major currency gaining against the U.S. dollar today.

One of the main reasons that the U.K. pound is expected to do well in forex trading on the currency market is due to the widening interest rate gap between the dollar and the pound.

Even the choppy equity markets and concerns about Greek debt default have been unable to send the U.K. pound lower in currency trading today, even though the loonie and euro are both down. Rangebound trading is expected, though, since the Independence Day holiday in the U.S. is resulting in low volume for the financial markets.