Excerpt from: Bonds and Interest Rates CFDs and Spread Bets
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| September 10, 2007 | | Spread betting and contracts for differences on interest rates | Spread bets and CFDs on U.S. interest rates should keep in mind that a Fed rate cut on Sept. 18 is considered imminent by most. The release of U.S. jobs data on Friday showed a drop in employment, and this is causing a great deal of unease over the U.S. economy. As a result, a Fed rate is widely expected. Reuters reports on the Fed rate cut:
"The payrolls on Friday triggered fears about the U.S. economy and now the question is not if the Fed will cut rates on Sept. 18 but how much will it cut," said Carole Laulhere, currency strategist at Societe Generale, Paris.
"It was a very negative message for the market with a huge rally in U.S. Treasuries and big falls in equities... The market will be very nervous and risk aversion will prevail until the Fed delivers this rate cut, the dollar will stay weak."
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