Positive manufacturing data out of the UK is helping the pound today in forex trading. The news about manufacturing was better than expected, and this is helping the sterling against the US dollar in currency trading.

Indeed, the news has some hoping that Britain's economy is ready to show signs of recovery. Britain has been in a tough place lately, with slow economic expansion, but inflation higher than the Bank of England has been comfortable with.

There are hopes now for the British economy, and that is being reflected by the pound's improvement in forex trading. Also boosting the pound is the fact that stock markets are higher today. Equities around the world are gaining ground on general risk appetite, and that is helping high beta currencies like the pound in their performances against the US dollar. 

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• Economic News and Forex Trading
  UK pound and others in currency trading

Euro is heading lower in forex trading as risk appetite flees and focus returns to Greece. Once again, it has become clear that the leaders of the eurozone lack the will or the ability to come to an agreement to save Greece.

As a result, the euro is, once again, retreating. Optimism about Greece is fading and that means the euro is dropping on the forex market.

Concerns about the US economy are also adding the risk averse environment. The latest news about consumer spending is disappointing -- especially since the latest news is about December. Personal income in the US increased, but spending decreased, and that might indicate that consumers are not ready to spend and boost the economy.

As a result, risk appetite has fled and the US dollar is in high demand. The euro won't be able to gain the upper hand until something is agreed upon for Greece, and the forex market has something to count on for the future. 

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• Economic News and Forex Trading
  Forex market news

The Canadian dollar is slightly higher in forex trading, moving a little bit higher on the strength of a weaker US dollar. The loonie is gaining as US dollar sinks under its bad news.

Additionally, loonie is being supported by oil prices right now. Oil prices are a little bit higher, and that is helping the Canadian dollar hold its gains -- even though risk aversion is setting in and would normally lead to losses for the loonie.

For now, though, Canadian dollar is just managing to hold its gains. It will be interesting to see how long it lasts. Poor economic data in the US, and renewed worries about Greece are likely to result in risk aversion soon. 

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• What's Next for the Loonie?
  Forex trading trends