Sterling/Euro Spread Betting Market Falls on UK Stimulus Hopes and G20 Comments
It’s been a quiet morning so far in London, with the FTSE barely changed, as hopes of Fed action look likely to keep traders in limbo for most of the day.
Financial spread betting investors will tread carefully today, lest they are caught out this evening by a Fed statement that confounds expectations.
As the global economy teeters on the brink, and the Eurozone crisis festers away in the background, the hope for many is that Bernanke will unleash a new round of stimulus.
At the very least, they are hoping for a tweak in the language of their statement to make it more accommodative.
The UK spread betting markets had an appetiser this morning, when the Bank of England published the minutes of its latest policy meeting.
The minutes showed the committee remained finely balanced on more QE in the UK, but that the governor himself had wanted to increase the asset purchase scheme by £50 billion.
The sterling/euro spread betting market has failed to make any progress this morning, with the euro slightly stronger after some positive noises from the G20 meeting in Mexico.
With no real economic news of note to fixate upon this afternoon, we will be left twiddling our thumbs until 4.30pm (London time), when the Fed’s statement will emerge.
A press conference will follow at 6.15pm (London time), giving ample opportunity for market gyrations as they try to guess Mr Bernanke’s next move.
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Financial Market Comments from Chris Beauchamp, Market Analyst, IG Index.
The above comments do not constitute investment advice and Clean Financial accepts no responsibility for any use that may be made of them.
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