Recently, the pound is performing well in the foreign exchange markets. This is in the midst of the trends, which suggests that it should be performing otherwise. This is because it performed favorably against the Australian dollar and euro. Hence, this time is indeed more exciting and challenging for traders to engage into spread betting and trading CFDs or contracts for difference.
Specifically, it was reported in the past few days that the exchange rate of pound to euro is at 1.1964, which is lower than 0.03% than the rate before. On the other hand, the exchange rate of pound to Australian dollar closed at only 1.4842 on the same date, which is lower by 0.18% than before. This is despite the fact that the exchange rate of pound to US dollar is higher by 0.47%, which is at 1.5818.
The trends in the exchange rates of the pound to Australian dollar and euro are due to several trends in the markets, which affect the realm of spread betting and CFDs as well consequently. Among these current events include the policy decision of the Bank of England related to the interest rate as well as announcement of vital economic from China like the retail sales, industrial products and even the consumer prices therein.
Aside from that fact that the China is indeed a big and influential market, it has become more interesting in the fields of foreign exchange spread betting as well as trading CFDs primarily because it has recently amended its expected or forecasted growth for 2012. Considering the announcements from the China’s major indicators is very essential because the said indicators have big impact and significant effects when it comes to commodities, emerging markets as well as equity markets and even exchange rate markets.
Further, there are also some signs that the rising rate of inflation will affect many markets and sectors in China, which will form part of the corrections why the country has amended its forecasts. Aside from that, they have also noted and consider the poor industrial figures in the country and the current figures when it comes to retail sales.