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.
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SOURCE City Index