Excerpt from: Spot Forex
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| June 08, 2010 | | Spread betting and contracts for differences on the U.K. pound | The sterling has dropped back on the spot forex market, thanks to a recent warning from Fitch. Yesterday, the sterling was finding solid footing against the U.S. dollar. However, spread bets and CFDs on spot forex trading should consider that things have changed today.
Fitch warned that the U.K. deficit was quite large, and that there was a rather large challenge to be faced by Britain in its attempts to overcome the current deficit. The news helped send the FTSE 100 lower, as well as the U.K. pound lower on the spot forex market. Striking Spanish workers haven't been helping matters.
However, Fitch did stop short of reducing Britain's AAA rating. This is good news, since a loss of this high rating for Britain's debt would be devastating. The new Conservative government is doing what it can to cut the deficit, and Fitch recommends robust measures to cut the deficit as quickly as possible.
| Topic Tags: CFDs, contracts for differences, FTSE 100, spot forex, spread bets, spread betting, sterling, U.K. pound | |
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