The month of July has started off very well for sterling bulls, as the British currency has posted over 400 pips worth of gains since bouncing off the July 1 low near 1.4875.

While there has been little overtly positive news coming out of the UK this week, there has not really been any bad news on the economic front either . And when compared to the grim statistics coming out of the US, it is easy to understand the attractiveness of the pound from an investor's standpoint. For today’s trade, it does look like the Bureau of Labor Statistics' Non-farm figures were pretty well priced in, as the movement was not that extreme and actually slightly favourable to the dollar. While today’s numbers were not by any means good, after a week full of incredibly bad US data relating to jobs, manufacturing and housing, today’s report still looked relatively like the prettiest girl at the dance. After a 400+ pip run this week, it would be hard to imagine that there would not be at least some profit-taking activity today, which would favour the US dollar. However, as the weekend approaches and the markets thin, severe moves in either direction may be seen.