MORE POOR UK DATA as UK Jan manufacturing output fell 0.9% (vs exp +0.3%) but rose 0.2% y/y, while Indus production -1.5% m/m vs exp -0.8%. GBPUSD enters its 3rd daily decline, eyeing $1.4850 as the 2 and 3 hour stochastics point lower. EURGBP attempting to close above 0.91 for the first time...

On the cycles of the S&P500 / VIX ratio and the stabilizing cost of USD 3-month LIBOR relative to its yen counterpart. ...

NFP DOLLAR BIPOLARITY? With forecasts for Fridays US jobs report ranging from -150K to -40K and unemp. rate expected +0.1% to 9.8% + the price effect of the previous revisions, the multitude of factors weighing on the report will undoubtedly cause wild swings in the 30-60 mins after the release....

US Feb services ISM hits 53 (exp 51) highest since Dec 2007, while Employment component rises to 48.6 (highest since April 2008) from 44.6. The report pushes 10-year yields to 3.65%, while EURUSD remains capped at the $1.3670 resistance mentioned in previous IMT (61.8% retracement of the...

GREEK SHOOTS FOR EURO? Euro holds firm and Greek bond spreads fall to 2-week lows as Greece announces 4.8 bln austerity plan to help it meet its fiscal targets this year. These measures are not only a way to prevent credit rating agencies from hitting out with another downgrade, but also part of...

While concerns over European sovereign debt persist, euro bulls have several technical reasons to be optimistic. Despite marking a fresh 2010 low, the EUR/USD's subsequent snapback continues to respect a key Fibonacci retracment on a closing basis (1.3486 - 61.8% of the March/December 2009...

GOLD HITTING NEW HIGHS vs. EUR at 837.08 which could be another classic topping formation in the metal as the case proved 2 weeks ago vs. EUR and against JPY in Dec 2nd. Gold vs. USD extends gains towards 1134, facing key resistance at 1135--50% retracement of the decline from the 1225 high to the...

We mentioned GBP in each of the our last 3 IMTs for a reason (Fri-Sat). sterlings collapse continues as GBPUSD drops 2.9% in a single day to $1.4784 (lowest since April), which is weighing on EURUSD. Lloyds bank latest losses (Friday); HSBCs eroding profits, renewed political doubts over a...

The GBP damage remains the headline of the day (see previous IMT) amid rising expectations of further quantitative easing from the Bank of England. GBPUSD bottoms at the $1.5273--50% retracement of the rise from the Jan 2009 low to the Oct 2009 high. Any recovery is seen capped at $1.5345-50....

The EUR/USD appears to be completing a fifth wave within a larger third wave move that originates from the November 26th/December 3rd 2009 double top. The formation of a 3-week falling wedge or ending diagonal, which often appears in the fifth wave position, further supports the beginning of a...