Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| February 26, 2007 | | Spread bets and CFDs on U.S. interest rates |
Spread betting and contracts for differences on interest rates requires that one pay attention to the economic news to decide where interest rates are likely to go. Right now, the stage is set for U.S. interest rates to drop in the second quarter. Reuters reports on U.S. interest rates possibilities:
In the United States, analysts said a slowdown in economic
growth could well prompt the Federal Reserve to cut rates from
5.25 percent. U.S. preliminary Q4 GDP data is due on Wednesday,
while the Institute of Supply Management's manufacturing index
is expected on Thursday. "We see one cut coming from the Fed in Q2, with weakness
backloaded this year, led by the housing and manufacturing
sector. Another sub-50 number from the ISM would add fuel to
that fire," ING head of FX strategy Chris Turner said. | | |
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