Excerpt from: Spot Forex
|
 |
| October 07, 2008 | | Spread betting and contracts for differences on interest rates | Spread bets and CFDs on a Fed rate cut should consider that it could happen rather soon. The Fed has announced that it isbuying so-called "commercial paper" in an effort to help increase liquidity. As an additional measure, the Fed is also mulling a rate cut (which is causing problems for the U.S. dollar in forex trading).
The U.S. Fed rate cut may be one of many cuts around in the world. In
an effort to boost the liquidity of the global credit market, rate cuts by central banks around the world may be made in tandem. This move is coming in response to the fact that the Libor rate continues to rise, indicating that bank to bank lending remains tight. | Topic Tags: CFDs, commercial paper, contracts for differences, Fed rate cut, Libor rate, spread bets, spread bets Fed rate, spread betting, spread betting interest rates | |
|
|
