Press Release Summary: Last week the Dow Jones poked past the psychologically important 14,000 level. However this push could falter as traders question the strength of the post summer rebound says Betonmarket\'s Michael Wright.
Press Release Body: While last week\'s economic data was still important, most traders are focusing their attention on the FOMC (the US central bank). The minutes from the last FOMC meeting will be poured over word by word on when they are released on Tuesday. The main questions are:
Will the FOMC actually cuts interest rates again?
Is a rate cut actually needed now with wheat and oil prices still soaring.
Is it too late to avoid an economic slowdown?
A man who is credited with fixing the last credit crunch was quoted last week as saying that most of the credit damage has been done. Any move from the FOMC now could be more for show rather than effective. In fact it could actually be counter productive, as it will allow inflation to eat more of the consumers\' purchasing powers.
The man quoted?
None other then Alan Greenspan.
\"We are beginning to see the frenzy calm down,\" the former chairman of the Federal Reserve told a conference in Lisbon. \"Unless we get secondary effects the worst is over.\" While Greenspan has no decision making power anymore, his ideas and remarks are widely followed.
This crunch affected banks world wide, as Germany\'s largest bank Deutsche Bank wrote down more than $3 billion in the wake of the liquidity crunch. A recent survey showed that the Euro zone service sector growth suffered its biggest slowdown in at least nine years in September, as the credit squeeze hurt business and new orders. U.S. service sector growth also stumbled to the weakest rate since March. The big question of course is whether the worst is indeed behind us as Greenspan implies.
Over the coming weeks there will be ever more attention paid to interest rate sensitive data, such as inflation, debt auctions consumer and corporate spending. Also there may be less pressure on the USD. If a country is on a rate cutting streak its currency tends to lose value and vice versa. Some argue that the extra rate cut that Greenspan is warning against is priced into the price of the Euro/USD over the last few weeks. The weakening Dollar and strengthening Euro has pushed the pair past record high after record high. If the rate cut were not to happen, the dollar could recover some of the ground recently ceded to various currencies.
While Greenspan\'s thoughts carry a lot of weight, they are no longer the final word. So there is potential that while he is predicting no rate cut, one could actually still happen. Intense speculation on the decision could result in a huge spike up or down on the day of the announcement. Thankfully using Betonmarkets.com you can take advantage of this potential volatility without having to know which direction the spike will be.
An up or down trade compensates you if the market touches either a higher or lower trigger. It only has to touch either level once and you win. An up or down trade on the EURO/USD with 25-30 day term and 200 pips (2 cents) each way potentially returns 8% ROI. This means that you are predicting that the EURO/USD will move significantly in either direction before November.
Address: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street Douglas, Isle of Man IM1 2AG
Betonmarkets.com is the leading fixed-odds financial betting website. The website has processed over 10 million bets since inception in 2000, and generates annual turnover in excess of US$ 100 million. Betonmarkets offers a wide range of fixed-odds financial bets on forex rates, stock indices, and international stocks.
Betonmarkets is operated by the Regent Markets Group of companies. Regent Markets is affiliated to the Regent Pacific Group, a Hong Kong-listed investment group. Regent Markets has offices in three countries, and holds bookmakers licenses in the Isle of Man, the UK, and Malta.
Fixed-odds financial betting offers particular advantages over other forms of financial betting and investments, such as limited risk, potentially high payouts, and unique market opportunities. Particularly popular is Betonmarket\'s Range Bet, which offers the opportunity to profit from a period of quiet market action.
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BetOnMarkets Bet Types:
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No Touch Bet: A no-touch bet is the opposite of the one-touch bet. You would buy a no-touch bet if you think the market will never reach a certain level within a specified range of time. Example: [Pays 100 if the FTSE does not touch X between today and date T]
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Expiry Range Bet: You believe that the market will be between two distinct levels (high and low) on the expiry date. Example: [Pays 100 if the FTSE closes between X and Y on date T]
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Intraday Double Down Bet: Buy this bet to play a market drop between two given hourly market times today. You will have the possibility to set the starting hour of the bet and the ending hour of the bet, and you will win double your stake if the market follows your prediction. Example: [Pays 100 if the FTSE declines between the starting time hour and the expiry hour]
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Web Site: http://www.betonmarkets.com
Contact Details: Regent Markets (IOM) Limited 3rd Floor, 1-5 Church Street, Douglas, Isle of Man IM1 2AG, British Isles.
2025
