Excerpt from: Spread Betting European Stocks
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| August 08, 2006 | | Possible interest rate hike later? | Today's expected announcement from the Federal Reserve about U.S. interest rates have the world waiting. The dollar has remained steady ahead of the news. Analysts suspect that even though the Fed is unlikely to raise rates at this time, it will likely keep its options opening, hinting at an interest rate hike later this year, reports Bloomberg:
'The Fed is going to try and keep all its options open and
so they'll probably sound quite hawkish in the statement', said
Stannard, a London-based currency strategist. 'That could give
the dollar short-term support, although the trend over the long
run is weakness'.
This means that short-term spread bets and CFDs on U.S. dollar strength could be profitable, while long-term CFDs favouring other currencies would be more profitable.
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