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Financial Spread Trading By Philip White

Not all the news was bad yesterday, as US growth numbers were positive, putting the onus on other Central Banks to evaluate possible rate hikes.

Football Betting Spread (EUNN) London - European Central Bank President Jean-Claude Trichet backs raising interest rates saying that he will reiterate the need for higher interest rates when he addresses the European Parliament.

The EUR extended gains vs. the USD yesterday after European Central Bank left interest rates unchanged at 4.0% as expected. Investors focused on the ECB President Trichet's comments where he stated that some governors at the bank would have supported a rate increase. The ECB President also added that the risk in financial markets is still evolving and is accompanied by continued uncertainty about the potential impact on the real economy. The EUR last traded 0.2% higher at $1.4627, after touching a session high of $1.4636.

Commodity Spread Trading The European common currency, the Euro, has risen one percent already this year as currency traders bet on the ECB raising interest rates at least twice this year. Now that Trichet says he will emphasize the need to hike interest rates, currency traders may push the euro even higher.

The market eagerly awaits this speech as Trichet may deliver some further clues on future rate hikes and on where the currency is heading.

Nfl Betting Spread The ECB is looking to hedge inflation, not unlike the US Central Bank's new chief Ben Bernanke said the Federal Reserve must do to keep inflation in check in the United States by raising short-term interest rates at its next meeting in March.

Markets are expecting an additional rate hike later this quarter and a return to a hawkish rhetoric by Trichet will pretty much confirm market expectations.

Advanced Commodity Spread The euro traded at $1.1941 in late morning but had been as high as $1.1976 earlier, which it hadn't reached that high since Feb 10th. The euro rose to 141.08 yen, from 140.95. The dollar was at 118.12 against the yen from 118.06.

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.

Betting Exchange Spread Trading might have been stronger for the euro if it weren't for the Presidents Day holiday in the United States.

Stock Spread Trading Currency traders are expecting thatthe ECBwillraiseinterest ratesa quarter point next month to 2.5 percent, narrowing the yield advantage of US securities.

Online Spread Betting The yield on the three-month Euribor contract due March 2006 was 2.67 percent today.

Complete Guide Spread Trading The dollar rose 14 percent against both the euro and the yen last year as the US Federal Reserve raised rates eight times while the ECB increased borrowing costs for the first time in five years in December and the Bank of Japan left rates near zero.

Betting Horse Racing Spread The cost of goods in Europe have been rising with Germany's producer price index at a 24-year high, according to a report released today. Germany is Europe's largest economy.

Low Spread Forex Trading With prices rising, the European Central Bank will need to raise interest rates in order to keep inflation in check.

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