Excerpt from: CFDs & Spread Bets
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| May 22, 2008 | | What will oil prices do to the US dollar? | As the US dollar falls in currency trading, many are wondering how their financial spread betting strategy should consider the interplay of oil prices and the US dollar.
There are actually a couple of ways this might play out. Reuters reports on the possibilities for oil prices and their effects on the US dollar:
"People are in two minds about what oil prices will do for
the dollar," said Chris Turner, head of FX strategy at ING.
"It can lead to more diversification from central banks and
lead them to adjust their reserves out of dollars. But
stagflation...can also turn the focus of the Fed to deprioritise
growth and focus on inflation, increasing the prospects of
higher rates and a dollar supportive yield curve." | Topic Tags: financial spread betting, oil prices US dollar, spread betting, spread betting strategy, spread betting strategy oil prices, spread betting US dollar, US dollar currency trading | |
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