Spread Bet Currencies as Global Recovery Remains Under Threat

LONDON, July 17, 2012 /PRNewswire/ --

On Monday, 16 July, the International Monetary Fund (IMF) said that the global economic recovery was 'still at risk' and eurozone economies remain in a 'precarious' situation.

What does this mean for investors trading on currencies such as the euro?

Here, we look at the IMF's forecast for global growth and look at how you could trade the EUR/USD currency pair with a City Index spread betting account.

Eurozone in 'Precarious' Situation

The IMF has stated that eurozone economies remain in a 'precarious' situation and will remain so if European leaders do not take further action to avoid the sovereign debt crisis from escalating.

In the report from the IMF, they state: "The utmost priority is to resolve the crisis in the euro area."

Alongside the IMF, the European Central Bank (ECB) and European Union have demanded austerity measures in the struggling periphery economies of Greece, Spain and Portugal in return for bailouts.

Beyond the eurozone, the forecast for global growth was downgraded for 2013 from the predicted 4.1% in April, to 3.9%.

One of the most significant downward revisions was to the UK who in April was predicted to grow by 2%, but now by only 1.4%.

How to Spread Bet following the IMF Report

Following the stark analysis of the state of the eurozone economies by the IMF - how do you plan to trade the currencies market?

With a financial spread betting account, you can trade across major and minor currency pairs including the EUR/USD.

Through a spread betting account - you can trade on the future price movement of the first currency in a pair.

If you believe the euro will appreciate against the dollar, you would go long and buy.

Alternatively, if you believe the euro will depreciate against the dollar, you would go short and sell.

Remember, however, if the market moves against your position you could incur losses greater than your initial deposit. Ensure you full understand the risks involved before placing a trade.

Start Financial Spread Betting

To start spread betting across a range of trading platforms - including mobile - you can apply for a spread betting account with City Index through their website: http:http://www.cityindex.co.uk

Read More Spread Betting Tips

If you found this article helpful, you may want to read more just like this. You can access a range of free spread betting tips, guides and articles through the City Index website.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

As a group, we transact in excess of 1.5 million trades every month in over 50 countries. We provide access to a wide range of instruments including margined foreign exchange, CFDs and, in the UK, financial spread betting.

We constantly look to improve the performance of our platforms and expand our range of services. The result is our customers benefit from innovative trading tools with transparent pricing, competitive spreads, and a high standard of customer support. Visit http://www.cityindex.co.uk/ for details.

Spread betting is exempt from UK stamp duty and Capital Gains Tax. However, tax laws are subject to change and depend on individual circumstances. Please seek independent advice if necessary.

SOURCE City Index