MPC to announce further actions at noon, could this be an opportunity?

adamt

Very soon the MPC are to announce their proposed actions :

"The Bank of England is expected increase the amount of new money being created to £225 billion today, and maintain the interst rate at 0.5%."

As im new to investing, what would this mean for opportunities?

I have read this announcement could force the pound to fall, so could be worth shorting?

Etccarmageddon

stoaking up future inflation in my opinion which makes NSI index linked certificates an option to consider instead of a bank/building society fixed interest rate bond.

adamt

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sabretoothtigger

I have read this announcement could force the pound to fall, so could be worth shorting?

From what I can see, the pound just rose. Expectations are always in the price so in this case it was worth holding more pounds as less money is being printed then some feared and its adjusting upwards is my interpretation. Confusing business:wall:


http://forums.moneysavingexpert.com/showthread.html?p=26595335#post26595335

adamt

sabretoothtigger wrote: »

From what I can see, the pound just rose. Expectations are always in the price so in this case it was worth holding more pounds as less money is being printed then some feared and its adjusting upwards is my interpretation. Confusing business:wall:


http://forums.moneysavingexpert.com/showthread.html?p=26595335#post26595335

i know!

When shorting a currency like the Pound, how exactly do you follow the price of the pound (whether your making money)?

Wouldnt you need to compare it to another currency like the Dollar?

turbobob

Yes if you were trading currency you would trade a currency pair, e.g EUR/GBP or GBP/USD.

On another note, I read recently that ETFS are releasing some new currency funds - http://www.etfsecurities.com/en/news/etfs_news_091104.asp

adamt

turbobob wrote: »

Yes if you were trading currency you would trade a currency pair, e.g EUR/GBP or GBP/USD.

On another note, I read recently that ETFS are releasing some new currency funds - http://www.etfsecurities.com/en/news/etfs_news_091104.asp

thanks for the link, but i think first of all i'll try a spread bet, as so far i have only traded equities, but i will go onto ETFs at a later date.

Do you know the epic ofr GBP/USD ? I tried typing this but with no luck?

Also as i think the value of the Pound will fall, which currency is best to pair with the pound? does it matter aslong as it falls?

turbobob

As your probably aware currency spreadbetting is extremely high risk. The leverage is huge. You might think that the value of the pound will fall, and there may be fundamental reasons for believing that, but what is the market telling you? What is the trend (check over several timeframes)? Which currency pair to trade (if any) would depend on your analysis. If theres a practice account you can use without real funds at risk you might want to have a look at that.

I don't think there is an epic code for currency pairs?

ses6jwg

I was tempted to "go long" on the FTSE this morning, and I should have really.

But I've been bitten in the !!!! by spreadbetting so decided against it.