Excerpt from: Futures and Commodity News
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| February 19, 2007 | | Spread bets and CFDs on currencies | The major currencies are at a bit of a crossroads, and they are actually rather dependent upon each other. Knowing where the currencies are at on the FX market, and how they interact with each other can help your spread betting and contracts for differences on currencies. Reuters reports on the state of today's FX market:
The value of Japan's currency is part of a growing Asian
challenge to Europe as the world's leading exporter. This is
led nowadays as much by China, with its vast pool of cheap
labor and a currency that is state-controlled, unlike the yen.
Also, just when the yen may be about to reverse course, the
dollar is also showing possible signs of becoming a weakling,
slipping in recent days to levels that cause concern in Europe,
from about $1.30 per euro upwards.
Analysts stress that a yen revival is no cure-all for the
European economy. Morgan Stanley's chief Europe economist, Eric
Chaney, calculated that a 20 percent yen rise would add just
0.2 percentage points to euro zone gross domestic product. | | |
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