Excerpt from: Financial Spread Betting Strategies
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| October 31, 2006 | | Financial spread betting on yen should be careful | The Japanese yen is steadying against the U.S. dollar on the confirmation that the Bank of Japan will wait until next year to raise interest rates. This means that financial spread betting strategies involving the yen and the dollar should be cautious, as the greenback is slowly advancing on the news that the Federal Reserve will not cut rates until at least next year. Reuters reports on the Japanese interest rate situation:
In its twice-yearly outlook on the economy and prices, the
BOJ reiterated it would gradually adjust rates based on economic
and price conditions, a message that was echoed by BOJ Governor
Toshihiko Fukui. The outlook report "confirmed that the BOJ's stance toward
monetary policy from here on is unchanged", said Daisuke Uno,
market strategist for Sumitomo Mitsui Banking Corp.
Uno said the release matched market expectations, and may
have disappointed those who had looked for the BOJ to present a
more upbeat view.
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