Continued selling pressure on a broadly weak dollar has allowed the pound to strengthen

The pound was able to stem recent losses against the greenback yesterday, as selling pressure on the US dollar increased.

• Sterling was supported yesterday morning as European markets opened up strongly following U.S. data on Tuesday that reaffirmed the world's main economy is about to return to growth.
  
• Confidence was further increased by comments from Federal Reserve chairman Ben Bernanke, who said the US recession was now "very likely over."
  
• However, the pound traded in the red for the majority of the day, unable to break through the 1.6500 resistance level, with a raft of US data in the afternoon, which included CPI figures, industrial production data, and an improved current account figure, failing to encourage demand for the UK currency.
  
• The pound did recoup losses though as the US markets came online and also opened strongly, reaffirming confidence in the global recovery, and diminishing demand for haven currency.
  
• Sterling has continued to rally this morning, currently trading up 0.2% for the day.