Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| August 01, 2006 | | Futures markets giving it 39 percent | The U.S. Federal Reserve is scheduled to make an interest rate decision on August 8. The core inflation report of yesterday showed an increase, a possible sign that the Fed may raise rates after all. But inflation remained within acceptable limits, and that means there could be a reluctance for the Fed to actually raise interest rates. Employment figures to be released on Friday should futher affect debate among futures investors, who recently raised the likelihood from 31 percent to 39 percent.
Placing a futures spread bet on the likelihood of an interest rate hike could be interesting, as well as spread betting on the value of the U.S. dollar, depending on how the interest rates might go.
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