This week’s financial spread betting update is now available and can be read by clicking here.
This week began with a hugely volatile trading day on Monday which saw some very large swings in both directions in several markets. At the time of writing this, the US looks set to avoid a default following a return vote of 269 to 161 in favour of increasing the debt ceiling. The new legislation plans to increase the debt ceiling until 2013 and reduce spending by $2400bn over 10 years and is set for a final vote from the senate on Tuesday. As we have written before here, in the long run this is likely to make little difference as the US debt has already gone beyond the point of no return. This is very much a case of kicking the can down the road.
The markets so far do not seem to be comfortable with the current situation as weak economic data continues to come forward and this has lead to treasury yields falling to new 8 month lows as safe haven markets come into demand once again. The Swiss franc, another safe haven market has also yesterday risen to yet another all time high. The prospect of further quantitative easing looks highly likely and this will be to the further detriment of the US dollar.
This week’s financial spread betting update begins with: All the focus will be on the US debt debate relating to raising the US debt ceiling in order for the US to avoid default and lose their AAA credit rating. It is in reality a joke that the US still holds this status as their debt levels are already beyond the point of no return and the fact that the US still holds the triple A rating shows how much of a joke the rating agencies are…..…continue reading by clicking here