Excerpt from: Futures and Commodity News
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| February 09, 2007 | | Sterling floundering in spot forex trading | Spread bets, CFDs and spot forex trades should short the pound today as it flounders on the spot forex market. The interest rate decision (keep them the same) along with deliquenices in the subprime U.S. lending market, are hitting British economy players and undercutting support for the sterling on the spot FX market. FX Street reports:
However the sharp divergence between UK and Eurozone monetary policy
has earned EUR/GBP the status as the day’s most market moving currency
pair on a percentage basis. The sell-off in the GBP/USD was
exacerbated by a report from the Wall Street Journal that UK based HSBC
was forced to set aside 20 percent more capital (most likely in US
dollars) to cover the delinquencies in the US sub prime mortgage
market. | | |
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