Excerpt from: Futures and Commodity News
|
 |
| June 05, 2007 | | Possible interest rate hike fuels sterling against greenback | The U.K. pound is on the rise against the U.S. dollar again in spot forex trading. Spread bets and CFDs should consider the likelihood of a Bank of England interest rate hike this week. Such a hike could boost the sterling to near $2 on the spot forex market. Bloomberg reports information that could help with spread bets, CFDs and spot forex trades:
``There's a clear chance the Bank of England will hike this
week as inflation has been running high for some time,'' said SEB
Merchant Banking's Henrik Degrer, one of only four of 62
economists surveyed by Bloomberg News to forecast a quarter-point
rate increase to 5.75 percent this week. The rest expect the bank
to hold rates at 5.5 percent. Raising rates ``will be supportive
for sterling and we'd expect it to go above $2 again.'' | | |
|
|
