Pound Falls Against Euro as Traders Reduce Bets on Interest-Rate Increases

(Bloomberg) -- The pound declined against the euro as
investors cut expectations the Bank of England will raise
interest rates this year for a sixth time.

Traders are betting on one more rate increase on signs
borrowing costs at a six-year high are beginning to slow the
economy. The European Central Bank, by contrast, will raise rates
at least twice more, futures trading shows. Economists predict
U.K. industrial production almost stalled in June, adding to
signs the economy may be losing momentum.


Read more at Bloomberg Currencies News

Options Traders Are Most Bearish on Dollar-Yen in More Than Four Months

(Bloomberg) -- Currency options show traders are the
most bearish in more than four months on the dollar against the
yen, on concern subprime mortgage losses in the U.S. will deepen.

Traders are paying the most since March for put options that
provide the right to sell dollars for yen. The cost of dollar
puts against the euro over dollar calls, known as the risk-
reversal rate, also rose to a 2 1/2-month high. Volatility
implied by one-month dollar-yen options rose to a three-month
high as investors bought protection against a weaker dollar,
which today fell against all of the 16 most-active currencies.


Read more at Bloomberg Currencies News

S.Africa bourse slips on global economy, rates woes

(Reuters) - Mining groups Anglo American and BHP Billiton led South African shares lower on Wednesday over jitters of economic slowdown in the U.S. and China, but gold shares soared on the metal's price.

Traders said the bourse was spooked into profit taking as U.S. stocks fell after Federal Reserve Chairman Ben Bernanke said the Fed expects the U.S. economy to expand one-quarter percentage point below its estimate six months ago.


Read more at Reuters Africa