Excerpt from: Forex Analysis
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| January 08, 2007 | | U.K. pound likely to gain against euro in currency trading | Buying the U.K. pound against the euro as a forex trading could pay off, as Great Britain pound news favors a Bank of England rate hike. The sterling offers a strong currency to forex traders, Bloomberg reports:
he pound may gain against the euro on
speculation the Bank of England will raise interest rates on
evidence of lingering house-price inflation.
The U.K. currency rose versus the euro last week after
reports showed house-price inflation at an 18-month peak,
mortgage approvals at the highest in three years, and service
industry growth at the fastest in a decade. Interest-rate futures
trading shows investors last week raised bets the central bank
would raise rates in the first quarter.
``Sterling still has a lot of the attractions that drove it
last year,'' said Simon Derrick, chief currency strategist at the
Bank of New York in London. ``It presents an alternative to the
reserve managers looking to diversify and still presents strong
yields.'' | Topic Tags: Bank of England, currency trading, forex traders, forex trading, forex trading strategy, Great Britain pound news, U.K. pound | |
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