Excerpt from: Futures and Commodity News
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| October 23, 2006 | | Spread bets and CFDs could be profitable favouring the sterling | With Britain's economy doing rather well, currency analysts expect that the U.K. pound will likely advance as the Bank of England raises borrowing costs. This is a good time for favourable spread bets on the sterling, as well as buying the pound in spot forex trading. Bloomberg reports on the pound's likely rise on the spot forex market:
The U.K. pound may advance against
the euro after a report predicted Europe's second-largest economy
will grow faster than previously expected this year and next,
stoking speculation the central bank will keep increasing rates
into 2007.
The U.K. currency logged a weekly gain against its European
counterpart after two policy makers voted to raise borrowing
costs at the bank's latest rate-setting meeting and a report
showed the economy grew faster than expected in the third
quarter. The ITEM Club said yesterday the U.K. will expand 2.6
percent this year, up from a July forecast of 2.5 percent.
``The market may start to ramp up expectations for a rate
hike next year,'' said Jeremy Stretch, a currency strategist at
Rabobank Groep in London. ``That can provide the catalyst for
more upside on the pound.'' | | |
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