Financial Spread Betting News 15th August 2011

This week’s financial spread betting update is now available and can be read by clicking here.

So far this morning the stock indexes are pretty much flat but we may see higher volatility. The US dollar has continued to rise against the Swiss Franc and the recent long-term downtrend may be coming to an end, at least for now. Elsewhere the dollar is weaker on the whole as it continues with weakness from the latter part of last week. Overall the various currency markets are all in a battle to see who can engineer the weakest currency as each Country believes that a weaker currency will boost their export trade and also lower the debt through the process of inflation.

Those who still believe that governments are still in favour of low inflation should think again as the reality is the opposite. This is why we have so much devaluing and printing of currencies around the globe. Everyone is aiming to pay back their debts with a weaker currency. This is particularly the case with the US and this is why I expect there will be a return to quantitative easing, or QE3 and a weaker dollar down the road.

Gold is also flat this morning after a fairly volatile week last week, which saw new all time highs and then a minor selloff due to increased margin requirements from the CME. In view of all the currency weakness the trend for gold is likely to continue to rise in the long term.

This week’s financial spread betting update begins with:

It’s been another very dramatic week in the markets, which has once again seen volatility spike higher and seen some of the largest daily swings in the stock indexes. The early panic for stocks sent them tumbling lower but go on to make partial recoveries by the end of the week. The trend continues to be down for stock indexes. The trend also continues to be down for the US dollar and is still mixed for commodities…….…continue reading by clicking here

Good trading

Phil Seaton

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