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Euro and Sterling Took Flight On Rate Hike

By Benny Nardino | August 3, 2006

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The / and (/) headed north today, Thursday on that took many by surprise after the European Central Bank and Bank of England both raised interest rates by 0.25 percentage. This was a move to tighten up control on inflation.

The Bank of England surprised the markets with a quarter-point rate hike, taking interest rates to 4.75 percent to slowdown accelerated growth. The zone to 3.0 percent also.

In sharp contrast, the U.S. Federal Reserve is nearing the end of its tightening cycle and this have been weighing on the .

In the ’s statement after rates rise the bank President Jean-Claude Trichet he said “.. monetary policy in the zone is still accommodative and that further rate increases will be needed if the bank’s economic assumptions are confirmed. “

These factors created a buoyant mood in the market today that blew the roof off within ten ~ fifteen minutes of the news. If you were on the right side, great gain with limited work.

Happy

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One Response to “Euro and Sterling Took Flight On Rate Hike”

  1. Marketivaforex Says:
    October 9th, 2006 at 8:01

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