BoE’s £50 Billion QE Announcement Could Offer an Ideal Trading Opportunity
LONDON, July 5, 2012 /PRNewswire/ –
On Thursday, July 5, the Bank of England announced that it will be pumping another
GBP50 billion into the UK economy, while leaving interest rates steady at a historic low
of 0.5% for the 39th month in a row.
Thursday’s announcement of further QE is likely to soothe investor nerves, reinforcing
optimism that the flagging UK economy can turn around, while further pressuring sterling
against a basket of currencies, including the euro, US dollar and Japanese yen.
Below, we look at how you could trade following the announcement with a Finspreads
spread betting account [http://www.finspreads.com ].
Events such as today’s Bank of England QE announcement can offer spread bettors the
ideal trading opportunity, enabling them to profit from both moves in the run up to the
announcement or indeed knee-jerk reactions in the markets following the release of key
Investors are now keenly awaiting the release of the non-farm payrolls report (a key
indicator about the health of the US economy) in the US on Friday 6 July.
You can profit from market reactions to key economic events
Spread betting is an alternative to conventional trading, whereby investors can
speculate and potentially profit from moving market prices, irrespective of whether prices
go up or down.
For example, following today’s announcement, if you expected the additional QE to
provoke a move higher among indices while forcing sterling lower, you could take a buy
position on the FTSE 100 while selling sterling against the US dollar (going short
If you were right and the markets moved in the direction you had anticipated (i.e. the
FTSE climbed higher, while sterling fell against the US dollar), you would net a profit.
If, however, you were wrong and the markets moved in the opposite direction (i.e. the FTSE
fell or sterling rose against the US dollar), you would net a loss.
Spread betting is a leveraged product which can result in losses greater than your
initial deposit. Ensure you fully understand the risks.
Learn how to spread bet [http://www.finspreads.com/Learn_to_spread_bet.aspx ] a basket
of currencies with financial spread betting provider Finspreads.
Spread betting is a tax-free* alternative to conventional trading, enabling you to
make a profit from knee-jerk market reactions to events such as these. Find out more about
the benefits and risks of spread betting
*Spread betting is exempt from UK stamp duty and Capital Gains Tax (CGT). However, tax
laws are subject to change and depend on individual circumstances. Please seek independent
advice if necessary.
Finspreads is a leading online financial spread betting [http://www.finspreads.com ]
firm, offering access to thousands of instruments on the world’s financial markets.
The company pioneered fully interactive online spread betting in 1999 and continues to
invest in technology to ensure that its service remains amongst the market leaders.