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Dollar Declines on Speculation of ECB Rate Hike
Football Betting Spread By Randy Chen
Two weeks ago, the BoE surprised the markets with an unexpected rate hike, fueling expectations for additional rate hikes, while in Europe, the ECB sounded less hawkish.
Commodity Spread Trading (AXcess News) Hong Kong- The U.S. dollar declined Tuesdayagainst the euro on speculation that the European Central Bank (ECB) will raise interest rates tomorrow when it meets. The euro has already risen two days in a row in anticipation of ECB President Jean-Claude Trichet signaling another rate hike when the policy board meets.
An ECB rate hike from 3.25% to 3.5% is universally expected, following many hints made by the ECB regarding %trong vigilance% in the past two weeks.
Nfl Betting Spread The euro reached a record against the yen and a two-month high versus the dollar on speculation rate increases by the ECB this year will outpace the Federal Reserve.
Investors are convinced that there will be further rate hike to 4.25% in September following last week's hawkish comments by ECB president Trichet.
Advanced Commodity Spread Currency speculators believe the ECB will hold interest rates at the current 2.5 percent tomorrow but that in May it will raise the rate for the 12-nation European Union's currency to 2.75 percent.
A weak outcome could revive speculation of an early rate cut from the Fed which would undermine the dollar.
Betting Exchange Spread The euro was at $1.2247 this morning in Tokyo from $1.2258 in New York late yesterday. It traded at 143.86 against the yen, from 144.07 yesterday, when it reached 144.14, the strongest since the euro's January 1999 debut, Bloomberg Europe reported.
As opposed to those in the U.S, European stocks rose throughout last week on speculation that global economic growth will withstand the US housing crisis. On Friday, the EUR traded around session lows against the USD at 1.3623. Four central banks including the ECB are expected to meet this week and announce their Interest Rates decisions. The Australian dollar, Canadian dollar, Euro, and the British Pound could all be the subject of increased volatility as investors still don't know how strongly the economy may be affected by the U.S. housing market.
Stock Spread Trading The United Arab Emirates, Qatar and Kuwait said they may be adding to their already hefty $36 billion in euro reserves in anticipation of the EU currency rising in value against other major currencies this year.
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