Excerpt from: Futures and Commodity News
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| November 22, 2006 | | U.K. pound gains on the spot currency market | The recently released Bank of England minutes resulted in an interpretation that interest rates will still be raised in early 2007, prompting a boost to the sterling in spot forex trading. Spot currency trades, CFDs and spread bets should carefully consider this information. Reuters reports:
Sterling erased gains in the immediate aftermath of the
minutes, but quickly bounced back again. Analysts said that
recent strong data from the housing market and the industrial
sector left the door open for more tightening. "The tone of the (minutes) text representing the majority
viewpoint was hawkish, playing up upside risks from house
prices, pay growth, and monetary/nominal indicators, but playing
down the chances of a sharp U.S. growth slowdown," analysts at
Lehman Brothers said in a note to clients.
"All in all, we remain comfortable with our judgement that
there are enough upside risks to the Bank's central projection
for inflation to justify a further rate hike in the new year." | | |
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