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ECB Raises Rates, Euro Bonds Rose as Currency Futures Fell

Stock Option Trading By Staff

The European calendar is packed for today with medium level importance events. Data from Italy, France and Germany will precede ECB's Trichet speak about Monetarism. JPY yielding Japanese currency. It seems like the commends made by Fukui were likely a warning to investors not to get too complacent about holding risky carry trades since the BOJ has said it plans to keep raising rates. term Japanese rates at just 0.25 percent, yielding currencies in the carry trade. year peak.

Currency Day Trading (EUNN) London - The European Central Bank (ECB) raised interest rates a quarter point. That was the indication made when ECB President Jean-Claude Trichet signaled the bank will keep to a pace of raising interest rates by a quarter point every three months.

inflation in the Euro zone could rise in the future above the central bank's 2 % reference value due to higher energy prices, bolstering expectations that the ECB will raise interest rates again later this year.

Financial Software Trading Euro bonds gained following Trichet's post-meeting news conference of the Central Bank Thursday. The news pushed the euro lower against the U.S. dollar and other major currencies.

30 EUR ECB President Trichet Speaks European Central Bank (ECB) monthly Bank for Intercountryal Settlements (BIS) meeting, in Basel. As head of the ECB's governing body, which is responsible for setting the euro zone's short term interest rate, his speeches can sometimes cause market volatility as Currency traders react to clues regarding future monetary policy.

Online Stock Trading Company The ECB lifted borrowing costs by a quarter-point today, the third increase in six months. Bonds rallied as global stock exchanges declined.

When trading currencies, the trade is always done in pairs – currency Pair. One currency is bought and the other sold. For example, you buy Euros with Dollars, anticipating, the Euro to increase in value relative to the Dollar. If the Euro rises relative to the Dollar, you sell the position and have made a profit. Most Commonly Traded Currencies (the “Majors”):

Forex Day Trading The yield on the benchmark German two-year bond fell 8 points to 3.35 percent. Germany's two-year bond is among the most sensitive to changes in European interest rates.

export business, and are uncertain and concerned about future fluctuations in currency exchange rates. Forex you can ensure a specific future rate in order to avoid the unknown impacts arising from rate fluctuations. For example, you are worried about increase of the USD against the EURO. You want to ensure the rate for a purchase of USD 10, 000 on a later date, say 60 days from today (actually, you may select a date that can be any business day up to six months from now).

Financial In Market ECB policy makersraised the benchmark refinancing rate today to 2.75 percent, as forecast. Economists expect the ECB ro raise its benchmark rate to 3.25 percent by December in an effort to slow inflation. In the United States, the U.S. Central Bank is expected to rise its benchmarkinterest rate a quarter point this month as well. U.S. Federal Reserve Chairman, Ben Bernanke, told international bankers earlier this week at a meeting in New York that the rate of inflation in the United States was still too high and that a majority of the Central Bank's Monetary Committee members felt as he did.

Stock Trading System The euro was down 1.3 percent against the U.S. dollar in mid-day trading in New Yorkreaching a session low of around $1.2630, down more than 3 cents from Monday's peak of $1.2980 and on track to post its biggest daily percentage loss in 11 months.

Day Trading Stock Tip The dollar extended gains for its fourth straight session, supported by expectations that the U.S. Federal Reserve will raise rates to 5.25 percent later this monthmarkingits 17th straight rateincrease since June 2004.

Financial Forex Forex Software The euro rose to a fresh record high against the zero-yielding yen of 145.69 shortly after the ECB lifted rates to 2.75 percent. But the unit later slid to around 144.40 yen, down 0.5 percent on the day.

Stock Market Trading Sterling fell 0.8 percent to $1.8400 and touched a month low of $1.8371, while the dollar shot up 0.8 percent against the yen and momentarily hit 114.74 yen, its highest in six weeks.

Day Lesson Stock Tip Trading Gold futures in New York for August delivery fell $17.60 an ounce to $615.00. Silver fell 58 cents per ounce to $11.53 and Platinum was off $37.50 per ounce at $1,194.00.

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