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LONDON, cheap Canada Goose April canada goose clearance sale 17 (Reuters) Market bets are growing that Britain main stock index, laden with heavyweight exporters, will stall as buy canada goose jacket cheap divergent central bank policies strengthen the pound against the euro.

An economic canada goose uk black friday rebound that is strengthening Britain jobs market could cheap canada goose uk prove a mixed blessing for the FTSE 100. It raises the risk of higher interest rates making pound priced exports more expensive just when the threat of deflation may force the European Central Bank to take canada goose store steps that would weaken canada goose factory sale the euro.

While investors question how much longer the Bank of England can keep its benchmark canada goose uk shop rate at a record low of 0.5 percent, the ECB whose main rate is just 0.25 percent opened the door this month to creating Canada Goose Coats On Sale money through quantitative easing (QE).

Some strategists and derivative traders canada goose clearance are now betting against the Canada Goose Parka FTSE and on a rebound in shares Canada Goose Outlet in the euro zone, whose exporters might finally enjoy some currency weakness if the ECB acts decisively to bring inflation back up towards its target canadagooseoutlete of just below 2 percent.

Sterling touched its highest level uk canada goose since late 2008 against a basket of currencies on Thursday, trading at $1.6835 and 82.18 pence per euro.

The FTSE is down around 3 percent so Canada Goose online far this year, while the Euro STOXX 50 the most Canada Goose sale liquid European index for options traders is up around 1 percent.

of the pound strength, we believe uk canada goose outlet it will be difficult for the FTSE to rally above previous highs. We don canada goose think there Canada Goose sale will be any QE in the canada goose black friday sale UK in 2014, said Gerry Fowler, global head of equity and derivatives strategy at BNP Paribas.

we do think the ECB will do QE this year. The canada goose coats on sale ECB has two priorities getting credit to SMEs (small and medium sized enterprises) and ensuring the Canada Goose Online euro doesn strengthen, and preferably weakens, which on both fronts we think is supportive of European equities.

Fowler canada goose uk outlet backed buying a December option on the FTSE with a strike price of 6,900 points giving the canadian goose jacket right to sell the FTSE at that level in December and essentially making a bet on the FTSE not rising above that level by then.

Mike Turner, European equity options broker at XBZ Ltd, advocated selling a June betting on the FTSE rising while buying a to bet on it falling, and doing buy canada goose jacket a reverse for the Euro STOXX 50.

Societe Generale derivatives brokers also said clients had been buying to play on the Euro STOXX 50 rising and outperforming the FTSE on expectations of the ECB being more dovish than the Bank of England.

call options are quite cheap at the moment on the Euro canada goose coats STOXX, and we have seen some clients buying them up, said Delphine Leblond Limpalaer, equity derivatives specialist at Societe Generale Corporate Investment Banking. (Editing by Blaise Robinson/Ruth Pitchford).

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