I have noticed over the last month or so, that when the US markets open, the £ comes under attack from the $.
Is the US manipulating the currency markets? or is there a genuine reason for this process?
This is a completely straight question.
(cracks knuckles, pulls up chair)
At one point of my career, I was in Foreign Exchange Capital Markets,... circa the fall of the Thai Bhat (the greatest ripple effect across economies, ever... bigger than this current sitch) up thru the installation of the Euro. [enough credentials FaceSlob]
Once again, starinvestor proves why he's Top 5 LPSGer on finance and economics. The government can in a longer-term fashion impact currency , but usually more often than not, doesn't work out.
There is a lot going on to your honest perception. For one, the pound was were the dollar was a few years ago. Overvalued, lifted by the economy (incl real estate), and a number of other factors. This is the daily result of an overall recoil.
Look at the GBP/JPY on a daily basis. - pound to the Japanese Yen...
These are just intra-day forces at work. The US currency forces are at will at this point. There's more concern on M1, M2, and the yield curve on the risk-free rate.
Hell, look at the Dow the past 4 days.
http://finance.yahoo.com/echarts?s=^DJI#chart1:symbol=^dji;range=5d;indicator=volume;charttype=line;crosshair=on;ohlcvalues=0;logscale=on;source=undefined
A quick opening spike (likely the minimal impact of shorts covering their positions), and then thump... you can time it like nobody's business.
Overall though... what you are seeing in coincidental to the natural market behavior.
Nothing to see here, move along ;-)
BTW: NEVER as an individual investor play the F/X market... it's really not meant for speculation. The vehicles in play for F/X are meant to hedge... hedging VERY large positions (for example, McDonalds is a legitimate player to hedge against exposure against volatile currencies in their foreign investments (in the billions and billions).
all those fly-by-night FX websites are bad news.